Kingfisher - broker's note

Investec Securities is moving its recommendation on Kingfisher to 'Hold' from 'Sell' following the group's preliminary results.

The broker says that although there were no major surprises in these figures it reckons there could be some unexpected positives in its first half numbers. Investec pointed to France as giving greatest indication of a variance on the upside.

This has helped it to cut the like-for-like sales decline it predicted for the full-year to 5% from an earlier forecasted 6.5%. The broker has also increased its pre-tax profit forecasts for 2009/10 by 15% to £315 million.

This has led to the upgrade in the recommendation and prompted an increase in the target price on Kingfisher from 110p to 150p, which compares with an underlying share price of 161p.

ends

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