Currys Shares (CURY) Move Higher: Upgraded on iD Mobile’s Untapped Potential

Currys shares  (LON: CURY) are up 1% this morning, as the firm received an upgrade by BNP Paribas Exane, signaling renewed confidence in the company's growth prospects, particularly concerning its mobile virtual network operator (MVNO), iD Mobile.

The upgrade to “Outperform” from “Neutral,” coupled with a raised price target of 135p from 115p, reflects growing recognition of iD Mobile as a significant, yet currently underappreciated, driver of value for Currys.

With Currys' share price currently sitting around 113p, the new target indicates a perceived upside of 19% from here.

The upgrade hinges on iD Mobile's impressive performance and future potential, suggesting that markets are beginning to acknowledge the subsidiary's contribution to Currys' overall valuation.

iD Mobile has demonstrated substantial growth, evidenced by its subscriber base exceeding 2 million in November 2024, a notable increase from 1.5 million the previous year. This 25% year-on-year expansion underscores the brand's attractiveness to consumers seeking cost-effective and flexible mobile solutions.

Further bolstering its reputation, iD Mobile was recognized as ‘Best Value Network' by Trusted Reviews in 2024.

Currys has strategically invested approximately £50 million over the past two years to fuel iD Mobile's expansion. This investment is projected to yield significant returns, with analysts forecasting iD Mobile to become a primary contributor to Currys' like-for-like sales growth of around 2% annually in the UK and Ireland between 2026 and 2028.

The mobile business is expected to contribute between 30% and 45% of Currys' UK and Ireland earnings before interest and tax during this period, a substantial increase from approximately 20% in 2025.

Deutsche Bank's valuation of iD Mobile at around £600 million underscores its significance, representing nearly half of Currys' current total market capitalization.

Financially, Currys has demonstrated solid performance, reporting a 37% increase in adjusted profit before tax to £162 million and an 82% rise in free cash flow to £149 million. The company aims to further solidify iD Mobile's position by growing its subscriber base to at least 2.5 million by the end of 2026.

Today's upgrade on the shares reflects increasing confidence in Currys' strategic direction, particularly the potential of iD Mobile as a key growth engine. While some shareholders advocate for divestiture to unlock immediate value, the company's investments and operational improvements suggest a focus on long-term growth and enhanced market competitiveness.