Proactive Investors - Kingfisher PLC (LON:KGF) will announce a “weak” first quarter when it updates the market on Wednesday, according to Barclays (LON:BARC), which reiterated its overweight rating and 350p target price.
Unseasonal weather, tight UK household purse strings and a deterioration in Poland’s consumer environment will contribute to damp top-line growth, said the bank.
Barclays said its forecasts also imply a “material slow down quarter-on-quarter.”
The B&Q and Screwfix owner reported in March that profits fell last year, and expected a similar decline throughout the year despite stating it is “well positioned” to navigate the current financial year.
"We remain confident in both the growth of our industry, and in our strategic priorities supporting growth ahead of our markets. And we are announcing today our new medium-term financial priorities, focused on growth, cash generation and higher returns to shareholders,” CEO Thierry Garnier said at the time.
Kingfisher’s shares have added 2.5% in the year so far to 245p down a third from their pandemic peak as DIY demand soared.
But even at these levels, said UBS analysts, the share price still do not offer an attractive entry point, adding a 'sell' recommendation and price target of 227p.