Kingfisher share price: Analysts don’t expect ‘radical reshaping’
While Kingfisher (LON:KGF) has brought in new blood to help with its recovery, AJ Bell isn’t expecting a ‘radical reshaping’ any time soon, Citywire reports. The comments come as the DIY retailer announced yesterday that it had appointed a Carrefour executive to the top job, with Véronique Laury set to step down.
Kingfisher’s share price, which surged yesterday as investors digested the appointment, has extended gains this morning, having added 1.73 percent to 218.00p as of 09:41 BST. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.25 percent higher at 7,420.55 points.
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AJ Bell weighs in on Kingfisher
Citywire quoted AJ Bell analyst Russ Mould as commenting yesterday that the fact that Kingfisher’s newly-appointed chief executive Thierry Garnier was from a different part of the retail sector ‘might bring some fresh thinking’ to the UK group and that the “business needs all the help it can get given how profits have been falling of late”. The DIY retailer announced the appointment yesterday, with Garnier set to join from Carrefour where he is currently a member of the Executive Committee and the Chief Executive Officer of Carrefour Asia.
“Don’t expect a radical reshaping of Kingfisher any time soon though,” Mould continued, adding that the company’s new CEO “will need to spend time trying to understand its problems and coming up with a solution”.
“Given how the previous chief executive couldn’t get it right, Garnier will need to be a genius at his trade otherwise Kingfisher could be singing the same old song,” the analyst concluded.
Other analysts on DIY retailer
Credit Suisse, which rates the company as a ‘neutral,’ trimmed its target on the Kingfisher share price from 240p to 220p. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average valuation of 238.13p.