Berenberg hails upside at Currys after Xbox repair deal

(Sharecast News) - Berenberg has reiterated its 'buy' rating for Currys after the electrical retailer became the first-ever Xbox Authorised Service Provider in the UK & Ireland, saying the deal is "much more than meets the eye".

The broker said Currys remains a top pick for 2025, citing strong expected increases in free cash flow, a profit recovery in the Nordics division and a growing services and B2B offer.

It was announced on Thursday that Xbox console owners can now get items repaired by Currys, both in and out of warranty, regardless of where they made their purchase.

"This latest positive news carries greater weight than might initially be perceived, as it highlights three increasingly attractive facets of the investment case," Berenberg said.

Firstly, the broker noted that the deal is the latest in a string of tie-ups with Microsoft, and Currys now partners with seven of the top 10 global tech companies in terms of R&D spend.

Secondly, Currys remains the only retailer in the sector that carries out its own repairs, giving it the ability to tailor its Care & Repair plans - currently at 10.1m active plans - which generate around �700m of services revenue.

Lastly, the retailer stands in good stead amid rapidly developing environmental regulations, given its electrical repair centre in Newark is the largest in Europe with more than 1,100 staff.

Currys was trading more or less flat at 94.5 by 1146 GMT, having jumped by nearly 15% since hitting a year-to-date low of 82p on 14 January.