Kingfisher share price slides ahead of interims
Kingfisher’s (LON:KGF) share price has fallen deep into the red in today’s session ahead of the do-it-yourself retailer’s interims tomorrow. The results will come after the blue-chip company appointed Carrefour executive Thierry Garnier to the top job at the end of June.
As of 13:38 BST, Kingfisher’s share price had given up 2.47 percent to 199.45p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.03 percent lower at 7,319.57 points. The group’s shares have given up about a quarter of their value over the past year, as compared with about a 0.3-percent gain in the Footsie.
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Kingfisher to post results
Kingfisher is scheduled to update investors on its half-year performance tomorrow after replacing its chief executive earlier this year amid continued underperformance of its French business.
“For some time the DIY retail group has seen a marked contrast in the performance of its different businesses, with Screwfix in the UK doing well while the French operations have struggled,” The Share Centre commented, as quoted by Proactive Investors, adding that it thinks it is unlikely that things will have changed in the interim results.
“The company is in need of some good news for investors, as can be seen in the struggling share price,” the analysts pointed out.
The Financial Times meanwhile reported in the run-up to the results that Kingfisher’s outgoing chief executive Veronique Laury was unlikely to seal a sale of the group’s Iberian and Russian operations before stepping down later this month. The DIY retailer said in November last year that it would exit Spain, Portugal and Russia.
Two people with knowledge of the matter told the newspaper that while Kingfisher remains in talks over the sale of the units, progress has been slow and no update is expected when it reports half-year results.
Analyst ratings update
Credit Suisse reaffirmed the company as a ‘neutral’ this month with a target on the Kingfisher share price of 220p. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average valuation of 227.14p.