Grace Gilberg, an analyst from Jefferies, maintained the Hold rating on Dunelm Group. The associated price target remains the same with p1,115.00.
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Grace Gilberg’s rating is based on a combination of factors that reflect both positive and cautious elements in Dunelm Group’s recent performance. The company has shown solid revenue growth in the first quarter, with an increase in both volumes and average selling prices, which is a positive sign of demand and pricing power. Additionally, the gross margin has improved, largely due to favorable foreign exchange impacts, which further supports the company’s financial health.
However, despite these positive indicators, there are some concerns that have led to a Hold rating. The company has indicated that profits are expected to be more weighted towards the second half of the year due to investment timing and inflationary pressures. This uneven profit distribution, while understandable, introduces some uncertainty into the financial outlook. As a result, Grace Gilberg has opted for a Hold rating, reflecting a balanced view of the company’s current strengths and potential risks.
Gilberg covers the Consumer Cyclical sector, focusing on stocks such as Dunelm Group, Kingfisher, and Wickes Group. According to TipRanks, Gilberg has an average return of 0.2% and a 66.67% success rate on recommended stocks.
In another report released today, TR | OpenAI – 4o also downgraded the stock to a Hold with a p1,224.00 price target.