Jefferies has reiterated its 'buy' rating on Wickes Group and maintained a 250p target price, implying 26% upside from the current 199p share price.
Analyst Andrew Wade said the home improvement retailer, the UK's second-largest DIY chain behind B&Q, continues to offer a compelling value proposition that is widening rather than narrowing against its main rival.
Jefferies' latest pricing basket survey found that Wickes' headline prices are now 3% cheaper than B&Q, up from a 1.5% differential in previous surveys, with the all-in basket price including trade discounts coming in 8% lower.
Wickes also outperformed B&Q on availability, with 90% of products in stock versus 75% at its rival.
Almost every in-stock item at Wickes was available for 15-minute Click and Collect, compared to around 60% at B&Q, and next-day delivery was available across all in-stock lines versus a variable two- to three-day wait at B&Q.
Beyond the competitive data, Wade flagged a macro tailwind that should benefit Wickes in the second half of its financial year.
The retailer faced a squeeze in the first half as retail selling price deflation of 2.4% ran against operating cost inflation of 2.5%, creating an unhelpful mismatch that pressured margins.
Jefferies' basket analysis suggests this is reversing, with its October 2026 basket 4.5% more expensive than a September 2025 baseline, compared to a basket that was 1.5% cheaper back in February.
Wade said cost efficiencies and an improved current trading trend should combine with this inflationary tailwind to produce a notably stronger second-half profit performance.
Jefferies models revenue growth of around 5% annually, with adjusted profit before tax growing at a compound rate of 13% through to financial year 2028.
The shares trade at nine times forecast financial year 2027 earnings, which Wade described as materially undervalued for a business delivering consistent market share gains and double-digit profit growth.
