In a report released today, Grace Gilberg from Jefferies maintained a Hold rating on Kingfisher (KGF – Research Report), with a price target of p274.00.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Grace Gilberg’s rating is based on a combination of factors including Kingfisher’s recent trading update which showed a mixed performance across different regions. While the UK market outperformed expectations with a significant increase in like-for-like sales, this was partly attributed to a seasonal boost that may not be sustainable in the coming quarters. Additionally, the performance in France was slightly better than anticipated, but Poland faced challenges due to geopolitical uncertainties, which contributed to a weaker performance.
Despite the positive results in the UK, the absence of an upgrade in the full-year profit guidance and free cash flow targets suggests a cautious outlook. The lack of a current trading figure and the reliance on favorable weather conditions for the recent performance may have influenced the decision to maintain a Hold rating. This indicates that while there are positive aspects, there are also uncertainties that warrant a neutral stance on the stock.
In another report released on May 22, Citi also maintained a Hold rating on the stock with a £3.00 price target.