Kingfisher Share Targets Cut After Latest Update

Analysts cut their price targets for Kingfisher (LON: KGF) following a disappointing Q3 trading update and a lowered profit forecast for FY25.

On Monday, Kingfisher shares plunged more than 13% on the news. The company revised its full-year adjusted profit before tax (PBT) guidance range from between £510m and £550m to between £510m and £540m.Q3 sales fell 0.6% year-on-year.

JPMorgan reduced its price target for the home improvement retailer to 235p from 265p while maintaining an “Underweight” rating on the stock. Similarly, Citi lowered its target to 262p from 301p, keeping a “Neutral” rating on the stock.

Jefferies joined the wave of price target cuts, cutting its target to 270p from 296p and reiterating a “Hold” rating on the stock.

Analysts at the firm highlighted Kingfisher’s 13% share price drop following its Q3 update, which revealed weaker-than-expected top-line performance. 

They noted that the company also revised its FY25 profit before tax guidance downward and flagged higher National Insurance contributions likely to weigh on FY26 earnings. 

Jefferies expressed caution over Kingfisher’s recovery prospects, particularly in France, where macroeconomic weakness and stiff competition remain significant hurdles.

The retailer, which owns brands such as B&Q and Castorama, faces mounting pressure as it navigates a turbulent market environment. 

Meanwhile, Deutsche Bank remains bullish on the stock, maintaining a Buy rating and 350p a share target. The firm said in a note that the sales weakness has been seen across the market and the figures “still reflect a market share gain despite pre-budget nerves in the UK and weak consumer confidence in France.”