Electricals group DSGi is expected to reveal a sales decline at next week’s AGM.

For the first 16 weeks of the year, Pali International analyst Nick Bubb forecasts an overall like-for-like sales slump of “at least” 4 per cent and falls at Currys and PC World of 5 per cent and 9 per cent respectively.

He expects a fall of between 10 and 12 per cent at the Italian UniEuro chain and a 1 per cent drop at the “jewel in DSGi’s crown”, Scandinavian Elkjøp.

However, Bubb hoped the meeting would bring a “sense of reality” after DSGi’s recent share price rise on hopes that it is close to selling its Spanish, Italian and Eastern European divisions and speculation that DSGi might be a bid target for Best Buy.

HSBC analyst Paul Smiddy said the share bounce “looks like madness” and noted: “Best Buy has Carphone Warehouse as a partner and needs no further international assistance.”

Smiddy downgraded DSGi from neutral to underweight and lowered his target from 47p to 42p.