In a report released today, Grace Gilberg from Jefferies maintained a Hold rating on Dunelm Group (DNLM – Research Report), with a price target of p1,095.00.
Grace Gilberg’s rating is based on Dunelm Group’s recent financial performance and future expectations. The company reported a strong revenue growth of 6.3% in Q3’25, which is a significant improvement from the previous quarter. This growth was attributed to increased volume sales across various categories and a positive reception of new seasonal product ranges. Despite this robust performance, the management has indicated that it is too early to determine if this trend will continue, which adds a level of uncertainty.
Additionally, while the gross margin improved slightly, the full-year profit before tax expectations remain unchanged at £208 million, aligning with market consensus. The company is confident about achieving a 10% market share in the medium term. However, the lack of an upgrade in profit expectations, despite the strong sales performance, suggests a cautious outlook. These factors combined have led Grace Gilberg to assign a Hold rating, reflecting a balanced view of the company’s current strengths and future uncertainties.