Kingfisher: Balanced Near-Term Outlook with Modest Profit Growth Supporting Hold Recommendation

Jefferies analyst Grace Gilberg has maintained their neutral stance on KGF stock, giving a Hold rating today.

Grace Gilberg’s rating is based on a balanced view of Kingfisher’s current performance and its near‑term prospects. She anticipates that the trading pattern seen in the third quarter has largely persisted into the fourth quarter in the UK and France, with only modest sequential improvement in Poland, which suggests steady but not transformational momentum. In her view, the margin impact from previously elevated cost pressures is now broadly recognised by the market, so the key debate shifts away from past profitability headwinds toward how effectively Kingfisher can re‑ignite growth in its core UK business and execute its recovery plan in France.

Grace expects profit before tax to grow moderately over the next two fiscal years, reflecting incremental gains rather than a step‑change in earnings power. This outlook, coupled with the operational challenges embedded in the French turnaround and the still‑developing recovery in Poland, tempers the near‑term upside potential for the shares. As a result, she sees the risk‑reward profile as relatively balanced: the company has identifiable levers for improvement, but these are offset by execution risks and only modest expected profit growth, supporting her decision to maintain a Hold recommendation.

According to TipRanks, Gilberg is a 2-star analyst with an average return of 2.4% and an 80.00% success rate. Gilberg covers the Consumer Cyclical sector, focusing on stocks such as Kingfisher, Dunelm Group, and Wickes Group.

In another report released today, TipRanks – xAI also reiterated a Hold rating on the stock with a p350.00 price target.