Berenberg starts Wickes at 'buy'

(Sharecast News) - Analysts at Berenberg initiated coverage on home improvement retailer Wickes with a 'buy' rating and a 280p target price on Thursday, stating the group was "building for the future". Berenberg said it likes Wickes for its omnichannel model, which brings convenience for the customer and allows the company "to harness long-term trends" in the UK repair, maintenance and improvement market.

The German bank also highlighted that Wickes' "robust" sales growth, costs efficiency and working capital control had driven "strong" cash generation and self-funded growth.

"Our 280p price target represents c25% upside and is based on our three-stage DCF analysis. It implies an FY 2026E P/E of 14.9x for a threeyear EPS CAGR of 14.5%. Our forecasts are prudently set, in our view, with material upside as Wickes ramps up its new growth ambitions," said Berenberg.







Reporting by Iain Gilbert at Sharecast.com