Financial Trading Blog
Stock of the day 05/09/2016 – Dixons Carphone PLC
The story of Dixons Carphone’s 2016 isn’t much different from its retail peers or, indeed, those sectors (like housing) that got torn apart post-Brexit. Gradually trickling lower during the first few months of the year, from a starting price of £5.02 to lows of £3.87 just before the referendum, the stock then lost the plot on June 24th, at one point hitting a 32 month nadir of £2.41. While it didn’t remain at that low for long Dixons still suffered in the immediate aftermath of the Brexit, spending most of July under £3.50. Since then, however, it has begun to pick up the pace a bit, rising to a current trading price of £3.81 (IT-Finance.com, 05/09/2016).
(Source: IT-Finance.com 05/09/2016)
In among the post-Brexit fray Dixons actually released a very strong set of full year figures at the end of June. With CEO Seb James dismissing the idea that it will be impacted by the Brexit the company posted a 17% surge in underlying pre-tax profit to £447 million, in part thanks to a 6% rise in like-for-like UK sales.
That strength is set to continue into the first quarter, with analysts forecasting Dixons’ UK growth to outstrip the group as a whole, at a 2% increase in Britain compared to a 1% rise overall. Of course it goes without saying that at the moment every update from every UK company comes with the expectation of some kind of comment on the Brexit, especially those in sectors so slammed as retail, and Dixons’ will likely be no different. Any word that the effect has been minimal will only help add to the sense of strength surrounding the company’s sales performance, and could help push the stock back above the £4 mark.
Dixons Carphone PLC has a consensus rating of ‘Buy’ with an average target price of £4.80.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
