Deutsche Bank thinks it’s time to take another look at Kingfisher PLC (LSE:KGF), with the B&Q owner set to publish results next week.
The home improvement retailer has been out of favour, with investors steering clear after the DIY boom faded post-pandemic and economic conditions in France weighed on performance. But the tide could be turning.
Ahead of results due on Tuesday, 25 March, recent data suggests things are picking up.
DIY spending is showing signs of recovery, and consumer surveys indicate more people are willing to invest in home improvements again.
If this trend continues, Kingfisher’s outlook could improve faster than many expect.
The company’s profit guidance for the year - between £510-£540 million - looks realistic given the better macro data.
This matches with market expectations of £523 million, reinforcing the idea that Kingfisher might have weathered the worst of the storm.
With that in mind, Deutsche Bank has a ‘buy’ rating on the stock and a price target of 340p, well above its current level of 265p.
** Update: Adds details of results **