Analyst Grace Gilberg from Jefferies maintained a Buy rating on Dunelm Group and keeping the price target at p1,075.00.
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Grace Gilberg has given his Buy rating due to a combination of factors that, in his view, outweigh the softer near‑term trading. Despite Q3 revenue growth slowing versus the first half and management guiding FY26 profit before tax towards the lower end of consensus, the company is still growing, defending margins, and navigating a weaker consumer environment without relying on a rapid confidence rebound.
Gilberg also highlights that gross margins have improved, cost‑saving plans for the second half remain on schedule, and the direct financial effect of the Middle East conflict should be limited. He notes that other home‑related retailers are reporting similar pressures, implying the challenges are sector‑wide rather than company‑specific, and therefore sees Dunelm as well positioned to benefit when trading conditions normalize, supporting his Buy stance.