B&Q owner Kingfisher PLC (LSE:KGF) took a hit on Wednesday after Citigroup analysts downgraded the company, citing weakness in overseas markets.
“We continue to see scope for stronger UK outlook on the back of healthy consumer sentiment trends and higher housing market activity in 2025 and 2026,” the bank said.
However, “limited upside risks” now remain on “ongoing weakness in France and incrementally lacklustre consumer sentiment trends in Poland,” analysts added.
Citi bumped Kingfisher down from a ‘buy’ to a ‘neutral’ as a result, but left its share price target unchanged at 292p.
This follows a year-to-date gain of 17.5%, which Citi acknowledged had been aided by improving trends in the UK and Poland.
Following the “good run,” there appears “limited scope for near-term upgrades,” Citi said, with an improvement in French profitability now needed.
Shares fell 2.3% to 280.30p on Wednesday.