Analyst Grace Gilberg from Jefferies maintained a Hold rating on Kingfisher (KGF – Research Report) and keeping the price target at p280.00.
Grace Gilberg’s rating is based on Kingfisher’s recent financial performance and future guidance. The company’s FY25 results showed a decline in like-for-like sales, particularly in the UK and France, which were below market expectations. Although the profit before tax was within the expected range, the forecast for FY26 indicates a reduction in profit estimates by approximately 6% at the midpoint.
Despite a positive free cash flow exceeding guidance due to inventory reduction and a new £300 million share buyback, the absence of current trading data and the profit downgrade for FY26 are expected to negatively impact the stock’s performance. These factors combined led to the Hold rating, as the potential for growth appears limited under the current macroeconomic and cost challenges.
In another report released on March 21, Exane BNP Paribas also maintained a Hold rating on the stock with a £2.75 price target.