Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

JPM puts Kingfisher on 'negative catalyst watch', cuts price target

(Sharecast News) - JPMorgan Cazenove cut its price target on Kingfisher on Monday to 180p from 190p as it placed the shares on 'negative catalyst watch' ahead of full-year results on 25 March. The bank said its analysis suggests that B&Q and Castorama owner Kingfisher will struggle to achieve an opex decline in FY25, even accounting for lower volumes and cost savings.

"Combined with sales forecasts still overly ambitious in the UK, we do not think that consensus is capturing the combined risk to both top line and a higher opex ratio," it said.

"In addition, we see risk to positive gross margin expectations in France and Poland if Leroy Merlin acts to regain share."

JPM said it was cutting its FY 2025 pre-tax profit forecast by 10% to £484m, which is 16% below consensus.

This is the third time in six months the bank has put the shares on negative catalyst watch.

JPM maintained its 'underweight' rating on Kingfisher.

Share this article

Related Sharecast Articles

WK Kellogg beats Q4 profit estimates but sales fall short
(Sharecast News) - American cereal manufacturer WK Kellogg delivered a mixed set of quarterly results on Tuesday as sales fell short of forecasts but profits smashed estimates.
Coca-Cola impresses in Q4 as demand, pricing improves
(Sharecast News) - Coca-Cola's share price was rising strongly on Tuesday morning after fourth-quarter sales and profits from the soft drinks giant beat market forecasts on the back of improvements in pricing and volume growth.
Octopus Energy reportedly enters Thames Water equity bid process
(Sharecast News) - Octopus Energy, Britain's largest residential gas and electricity provider, has reportedly entered into an agreement that will see it manage the customers of debt-laden water supplier Thames Water.
Smarttech247 secures three-year contract with existing client
(Sharecast News) - Smarttech247 announced on Tuesday that it has secured a three-year contract worth $0.925m with an undisclosed existing automotive client, further expanding its relationship within the sector.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.