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Dunelm

Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the Dunelm share price more attractive?

  • The chart shows the Dunelm share price since mid-May.
  • Peel Hunt has upgraded its rating to Buy and increased the target price to 750p (from 620.5p).
  • Consensus summary: 4 Buys, 4 Holds, 4 Sell; Average target: 580p (Source: Bloomberg).
  • Current share price 608p (at time of writing).
  • 3 Dec: Analysts at Peel Hunt say that Dunelm has strong foundations including 10%+ pre-tax earnings margins, a 15% return on capital employed and a 10% free cash flow yield.
  • Shares -24.25% from 2018 highs; +17.7% from 2018 lows; -12% year-to date
  • Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Dunelm – An Example

Let’s say you think that Dunelm shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Dunelm using a CFD, at the current price of 608p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Dunelm share price rises to mid-May high of 643p (+5.7%). Your profit would be £570 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Dunelm shares continue their downtrend, they fall 3% and hit your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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