Jefferies has initiated coverage of Wickes Group (LON:WIX) with a Buy rating and a price target of 275 pence, highlighting the DIY retailer’s value-led model and strong strategic positioning in the competitive UK home improvement market.
The broker said Wickes’ majority own-brand portfolio and focus on service quality give it a distinct edge in a fragmented sector.
It expects these strengths, combined with consistent execution of its strategy, to drive profitable growth despite ongoing pressure on UK consumers.
Jefferies forecasts a 20% compound annual growth rate in operating profit over the medium term, underpinned by market demand and operational resilience.
Overall, the firm believes that Wickes’ everyday low pricing strategy, which is supported by daily competitor benchmarking, positions it as “one of the most cost-effective options in the market.”
Wickes shares have performed well so far this year, climbing 36%. The stock has jumped on Friday following the note from Jefferies, currently up over 3% at around 210p per share.
The upbeat assessment comes in contrast to more cautious views from other analysts in recent months.
Earlier this month, Citi trimmed its target to 200p from 202p, maintaining a Neutral stance. Deutsche Bank went further in August, downgrading the stock to Sell with a 195p target, arguing that consumer headwinds in the UK warranted a more defensive outlook.
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