Despite a volatile performance in its short time on the ASX, Macquarie analysts are upbeat about the prospects of Dick Smith Holdings Ltd (ASX: DSH), giving the stock an outperform rating and a $2.60 12-month target price.
While the company has a short earnings history as a listed company, Macquarie believes that there are plenty of areas that management will aim to improve such as the productivity of staff and sales, a wider product range (including more private label sales) and store expansion.
What's more, while its online presence is not as dominant as larger competitors such as Harvey Norman Holdings Limited (ASX: HVN) or JB Hi-Fi Limited (ASX: JBH), analysts believe that management will successfully address these issues which will result in a significant upside for shares.
After listing early in December, shares fell to a low of $1.99 before climbing as high as $2.41 just over a week ago. They are currently sitting at $2.33 per share.
