Kingfisher Upgraded to 'Hold' by Deutsche Bank on Improving Industry Data

Deutsche Bank has upgraded its rating on Kingfisher (LON:KGF) to “Hold” from a previous “Sell” recommendation, citing encouraging industry data that suggests a more stable outlook for the home improvement retailer. The bank also raised its price target on the company's stock to 300 pence from 260 pence.

Analyst Forecasts Raised

In a note published Tuesday, Deutsche Bank analyst Adam Cochrane highlighted the improving data as a key factor limiting the potential for a negative revision to Kingfisher's full-year guidance when it reports first-half results on September 22. The bank had previously downgraded the stock in December 2025, anticipating UK cost pressures and a weaker economic environment.

Following the review, Deutsche Bank lifted its fiscal 2027 pre-tax profit forecast for Kingfisher by 4% to £605 million. This projection sits above the current market consensus of £580 million and is near the upper end of Kingfisher’s own guidance range of £565 million to £625 million. For the upcoming first-half results, the bank anticipates a pre-tax profit of £412 million, significantly ahead of the consensus estimate of £372 million.

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Contrasting Views on Outlook

Deutsche Bank's more constructive stance contrasts with that of other analysts. In July, J.P. Morgan placed Kingfisher on a “Negative Catalyst Watch,” maintaining its “Underweight” rating and a 290 pence price target. J.P. Morgan's analysts expressed concern that a UK heatwave could have negatively impacted trading at Kingfisher's B&Q chain.

J.P. Morgan's forecasts are more conservative, projecting a first-half pre-tax profit of £359 million, about 3% below consensus. Its full-year fiscal 2027 profit estimate of £567 million is at the bottom of Kingfisher's guidance, reflecting a more cautious view on the retailer's near-term performance.