Kingfisher PLC's (LSE:KGF) share price bombed more than 12% on Monday after the B&Q owner performed worse than expected in the past quarter and warned of a potential costly financial impact following the recent UK Budget.
The FTSE 100 home improvement retailer tightened its full-year profit guidance and said the Budget will add approximately £31 million to next year’s expenses.
Additionally, new fiscal rules in Kingfisher’s second-largest market France are expected to land another £14 million blow to the bottom line.
Barclays analysts added that Kingfisher’s October performance appeared “weak”, while sales of big-ticket items “remained soft”.
Barclays maintained a neutral rating on the stocks with a 310p price target.
Given the sharp decline in Kingfisher’s share price today, that price target represented a nearly 20% upside at the time of writing.
Kingfisher’s smaller trade tools chain Screwfix was a bright spot in today’s third-quarter results, noted Barclays.
A 1.8% increase in year-on-year sales showcased “robust demand from trade customers supporting positive LFLs (like for likes) and volumes in core categories”, said analysts.
Analysts at investment bank Jefferies called it a “weaker update” from Kingfisher. They predicted profit downgrades in financial 2026 as a result of higher National Insurance Contributions and interest costs.
Jefferies has a hold rating on the stock with a 296p price target.