Broker snap: Forecasts to remain intact at Kingfisher, says Singer

21st Jul 2011 12:47

Singer Capital Markets said that despite DIY retailer Kingfisher reporting broadly weaker-than-expected trading over the last ten weeks, full-year forecasts are likely to remain intact. During the first 11 weeks of the second quarter to 16 July, group sales grew by 1%, with sales in France and 'Other International' offsetting a weaker UK."KGF was slightly ahead of plan after Q1 and although the UK has been weak, this is not bad enough to more than offset the earlier gains, and overseas progress remains positive. We therefore do not expect forecasts to change, but the mix will favour France at the expense of the UK (B&Q)," said analysts Matthew McEachran and Mark Photiades.The broker keeps its fair value rating and 260p target price.BC