LONDON (ShareCast) - (ShareCast News) - Analysts at Jefferies upgraded home improvement products retailer Kingfisher (KGF) to 'buy' from its previous 'hold' rating on Wednesday, raising its target price from 310p to 400p along the way.
Jefferies said the retailer's investment attractions had begun to improve given the potential for a positive inflection in its French market share and strong performance in the UK despite cyclical risks led it to give the group a better valuation.

Strong sales from new product ranges underscored that the scale of change at Kingfisher remained "meaningful" but the pitfalls to profit expectations were declining as the roll-out of its new ONE strategy progressed, helped by a much improved B&Q digital offering.

In the UK, the analysts said, "KGF remains vulnerable to UK macro uncertainties. However, these look unlikely to be accompanied by the incremental headwind of a recovering Bunnings."

Jefferies concluded saying that the new 400p price target "presumes investors will be willing to pay a c.13x forward PE (6.6% FCY) a year from now."

As of 1700 GMT, shares had gained 4.57% to 322.60p.

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