Shares of DFI Retail Group (DFIRG USD) surged 4.33% in intraday trading on Thursday, as investors responded positively to a bullish analysis from Citi. The stock's rally comes amid growing optimism about the company's strategic initiatives and potential for improved performance.

Citi analysts believe that the market has not fully captured DFI Retail Group's potential, citing the company's ongoing efforts to divest underperforming businesses and adopt margin-improving initiatives. The analysts noted that DFI is shifting its focus towards lowering costs and allocating capital to higher-margin products and operations, a move that could significantly boost profitability.

In their report, Citi analysts raised their target price for DFI Retail Group to US$3.80 from US$2.80, maintaining a buy rating on the stock. This upgraded outlook reflects confidence in the company's strategic direction, despite some adjustments to profit forecasts due to recent business divestitures. The positive sentiment was further reinforced by expectations of continued strong performance in the food and Maxim's restaurants segments, as well as potential improvements in the health and beauty division.