Kingfisher (KGF)

Sector:

Retailers

Index:

FTSE 100

241.40p
   
  • Change Today:
      2.10p
  • 52 Week High: 356.00p
  • 52 Week Low: 203.00p
  • Currency: UK Pounds
  • Shares Issued: 1,950.46m
  • Volume: 959,875
  • Market Cap: £4,708.42m
  • RiskGrade: 158

RBC Capital upgrades JD Sports, downgrades M&S

By Michele Maatouk

Date: Monday 08 Feb 2021

LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets upgraded its stance on JD Sports on Monday, but downgraded its rating on Marks & Spencer.
The bank upped JD Sports to 'outperform' from 'sector perform' and lifted the price target to 950p from 900p as it noted the company has been able to strengthen its position during the pandemic in the "attractive" sportswear category.

"We think a combination of stronger digital sales, and better margins in the US should drive upside to guidance and consensus later this year," RBC said. It said the consumer shift towards health lifestyles combined with good product innovation should be positive for the sportwear outlook.

"The majority of customers prefer to shop in a multi-brand environment and Nike is now moving to reduce its number of distribution partners, both of which should be positive for JD Sports," RBC said.

"Additionally, JD saw strong digitals sales over November and December, driven by strong ranges and availability, supported by the investments that JD has made in online. Although we anticipate the digital retention rate falling back in H1 FY22, we see potential for JD to receive a sales boost from omnichannel capabilities when stores reopen."

RBC also pointed to JD's three acquisitions in the US over the past two to three years, taking its US exposure to 38%. It said the company's most recent acquisitions of Shoe Palace and DTLR should allow it to engage more with the lower income demographic and that JD should see sales and margin opportunities as a result of these acquisitions.

"We think valuation remains reasonable given JD's double-digit sales growth and we see further upside should JD maintain its recent track record of superior execution and omnichannel sales growth."

Separately, RBC downgraded Marks & Spencer to 'sector perform' from 'outperform' and cut the price target to 150p from 160p as it argued the food segment is progressing well but clothing and international look more challenging.

"We think M&S is making good progress in food and we see upside risk to market estimates for its Ocado Retail JV," RBC said.

"However clothing looks challenged and we see further pressure short term for International."

RBC said the stock's valuation is fair but "no longer in the bargain basement" as it was in mid-2020, hence the downgrade.

"We see more valuation upside for some other UK general retailers, such as Kingfisher and JD Sports," it said.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Kingfisher Market Data

Currency UK Pounds
Share Price 241.40p
Change Today 2.10p
% Change 0.88 %
52 Week High 356.00p
52 Week Low 203.00p
Volume 959,875
Shares Issued 1,950.46m
Market Cap £4,708.42m
RiskGrade 158

Kingfisher Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
27.48% above the market average27.48% above the market average27.48% above the market average27.48% above the market average27.48% above the market average
6.67% below the sector average6.67% below the sector average6.67% below the sector average6.67% below the sector average6.67% below the sector average
Price Trend
18.19% below the market average18.19% below the market average18.19% below the market average18.19% below the market average18.19% below the market average
40.43% above the sector average40.43% above the sector average40.43% above the sector average40.43% above the sector average40.43% above the sector average
Income
73.44% above the market average73.44% above the market average73.44% above the market average73.44% above the market average73.44% above the market average
69.23% above the sector average69.23% above the sector average69.23% above the sector average69.23% above the sector average69.23% above the sector average
Growth
42.22% above the market average42.22% above the market average42.22% above the market average42.22% above the market average42.22% above the market average
6.67% above the sector average6.67% above the sector average6.67% above the sector average6.67% above the sector average6.67% above the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 10
Sell 5
Strong Sell 2
Total 19
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Kingfisher Dividends

  Latest Previous
  Interim Final
Ex-Div 06-Oct-22 19-May-22
Paid 11-Nov-22 27-Jun-22
Amount 3.80p 8.60p

Trades for 09-Dec-2022

Time Volume / Share Price
12:59 1,962 @ 241.40p
12:59 852 @ 241.40p
12:59 499 @ 241.40p
12:57 12 @ 241.50p
12:57 835 @ 241.50p

Kingfisher Key Personnel

Chair Andrew Cosslett
CEO Thierry Garnier
CFO Bernard Bot

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