Shares in Kingfisher PLC (LSE:KGF), the owner of B&Q and Screwfix, have held up despite a patchy set of trends in its key markets, according to Deutsche Bank, which has trimmed its price target from 330p to 320p but maintains a “buy” rating.
Citi said the latest data on Kingfisher are “rather mixed” as summer approaches, with the UK and Poland proving “a bit weaker than we expected” but some improvement in France.
With the UK accounting for around 80% of Kingfisher’s operating profit, Cochrane warned that sentiment is now more cautious given weaker housing transactions, subdued results from builders’ merchants, rising inflation and higher unemployment.
Despite these headwinds, Deutsche noted that management is keeping its focus on trade customers, pushing its online marketplace and managing costs to offset inflation in wages and taxes.
The shares were off 0.5% at 268p.