Dunelm stock gains support after Shore Capital keeps Buy

Published on 09/19/2026 at 12:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Dunelm stock got a Buy call from Shore Capital on September 18, 2026, with a 1,000p target price. The broker sees mid-to-high single-digit annual sales growth and margin pressure.

Schwarzweiß-Reportagefoto einer Lagerhalle mit Arbeitern und Textilstapeln — Dunelm Group plc GB0033745292 dokumentiert schwarzweiß Arbeiter in einer großen Textilien-Lagerhalle beim Sortieren, Illustration mit AI erstellt.

Dunelm stock (ISIN GB0033745292) is being framed by a fresh Shore Capital note that kept a Buy rating and a 1,000p target price on September 18, 2026. Shore Capital said the retailer's refreshed plan is aimed at restoring mid-to-high single-digit annual sales growth, even as execution risk rises.

Broker view turns on investment

According to Sharecast, Shore Capital said on September 18, 2026 that the planned investment programme brings restructuring charges, higher capex, margin pressure and a likely pause in special dividends. The same note said Dunelm still holds around 8 percent share of the fragmented homewares market.

That matters because Shore Capital also said the broker expects margins to drift toward 11 percent and free cash flow to weaken while the share trades on a single-digit forward earnings multiple and a yield of around 6 percent. The comparison is clear: the broker sees medium-term growth potential, but only after a period of lower cash generation.

Trading sentiment stays cautious

Retailers were mostly weaker on September 18, 2026, and Sharecast said Dunelm was among the FTSE 250 fallers despite the positive broker note. The stock was still trading at a single-digit forward earnings multiple and a yield of around 6 percent, according to that report.

For investors, the key numbers are the 1,000p target price, the around 8 percent market share and the 11 percent margin view. The setup is simple: Shore Capital is betting that slower near-term earnings can be offset by a larger store estate and better digital execution.

Price and valuation

Dunelm stock closed at 984.0p on the London Stock Exchange on September 18, 2026, after a move of minus 0.8p or 0.08 percent versus the prior close. The shares were 1.6 percent below the 1,000p target price cited by Shore Capital.