CARD has acquired Funky Pigeon (FP) for £24m. In this note we assess the financial & strategic implications of the much-needed boost this gives to its online/digital capabilities. While there are some unknowns, namely FP’s current trading performance and tech roadmap, the scale of synergies available ensures this deal is compelling. Without yet assuming much in the way of LFL online growth, EPS and FCF are materially enhanced from cal’H2 2026 onwards. We have lifted our target price to 150p (50% TSR) and see a path to a 2.0-2.5x return over 3 years.
