Dunelm Group PLC (DNLM: LN) saw its price target increased by Berenberg to £14.70, up from the previous £14.10, with the firm maintaining a Buy rating on the stock.
The home furnishings retailer is reportedly outpacing market expectations in terms of market share growth. At the FY 2024 results announcement on September 11, Dunelm disclosed a year-over-year market share increase of 60 basis points for FY 2024.
This represents a slight acceleration from the 50 basis points growth reported in the first half of the same fiscal year.
Berenberg forecasts that Dunelm will continue to gain market share, attributing this to the company's strong market position and its ability to outperform less competitive peers.
The firm anticipates a year-over-year market share accumulation of 35 basis points, which is higher than current consensus forecasts.
According to Berenberg's analysis, this continued expansion will likely lead to outcomes that exceed the consensus expectations for the company's performance.
The positive outlook for Dunelm is based on the company's recent financial results and its strategic market positioning. Berenberg's revised price target reflects confidence in Dunelm's growth trajectory and its ability to leverage its competitive advantages.
The firm's stance suggests that Dunelm is well-positioned to build upon its current market share and capitalize on opportunities within its sector.
Overall, the increase in Dunelm's price target to £14.70 from £14.10, accompanied by a steady Buy rating, signals Berenberg's optimism about the company's ability to outperform market expectations and strengthen its position in the home furnishings market.
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