RBC cuts target prices for M&S and Kingfisher
By Benjamin Chiou
Date: Monday 08 Sep 2025
(Sharecast News) - RBC Capital Markets has reviewed its forecasts across the UK retail sector ahead of the upcoming Budget in November, cutting its estimates for Marks & Spencer and Kingfisher.
"Our latest relative pricing survey suggests a further polarisation between design and price led offers in homewares, which remains a relatively fragmented market," RBC said in a research note on Monday.
"In the run up to the UK budget on November 26, we expect some consumer uncertainty over tax rises to weigh on sentiment, but lower ticket homewares spend should continue to be resilient."
The broker has cut its target price for M&S (rated 'outperform') from 400p to 375p on the back of weaker clothing margins as the company attempts to win back customers following its recent cyber attack.
"M&S is currently trading at c.11x CY26e P/E which looks fairly undemanding, assuming M&S can execute well post its cyber disruption and is slightly below the middle of its historical range. This is especially so in our view in the context of M&S' loss-making share of Ocado Retail," RBC said.
The target price for Kingfisher ('sector perform' )has been kept at 300p, but earnings estimates have been reduced due to softer performances in France and the UK DIY market in the second quarter.
Kingfisher, RBC said, is trading as 12 times 2025 earnings, falling to 11 times on next year's estimates, which is just below the middle of its historical range.
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