Kingfisher share price: Analysts weigh in on DIY retailer
Fidelity reckons that Kingfisher’s (LON:KGF) has been notably quiet on its ongoing ‘One’ transformation programme, Citywire reports. The comments came as the DIY retailer updated investors on its interim performance yesterday, revealing that its underperforming business in France had continued to pressure sales.
Kingfisher’s share price tumbled in the previous session, giving up 3.15 percent to close at 195.15p and underperforming the broader UK market, with the benchmark FTSE 100 index closing 0.09 percent lower at 7,314.05 points. This morning, the DIY retailer’s shares have climbed higher and as of 08:24 BST were 0.56 percent better off at 196.25p, as compared with about a 0.2-percent fall in the Footsie.
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Fidelity weighs in on Kingfisher
Citywire quoted Fidelity analyst Emma-Lou Montgomery as commenting that Kingfisher had already spent three years in a turnaround programme but it is unknown whether new chief executive Thierry Garnier will finish the job when he takes over from Veronique Laury.
The analyst reckons that what she referred to as the DIY retailer’s ‘stubborn reluctance’ to ditch Castorama in France and to expand Screwfix overseas was ‘short-sighted and self-defeating’.
“It was notable the One Kingfisher, for so long now the group’s transformation slogan, wasn’t mentioned once,” she continued, adding that it had “obviously been put on the scrap heap now that Laury is downing tools and been taken off the project”.
Other analysts on DIY retailer
Keith Bowman at interactive investor meanwhile commented in a note yesterday that ‘patience may be wearing thin’ for Kingfisher investors, and that the group’s incoming CEO will need to act fast or the blue-chip group may find itself going the way of Marks & Spencer (LON:MKS) – out of the FTSE 100 benchmark.
UBS reaffirmed the DIY retailer as a ‘sell’ today, trimming its target on the Kingfisher share price from 205p to 180p. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average valuation of 223.57p.