Broker snap: Investec keeps hold of Kingfisher

1st Dec 2011 11:14

While B&Q and Screwfix owner Kingfisher reported third quarter profits ahead of Investec's forecasts, the broker has reiterated its hold rating given the "undemanding valuation metrics".The group delivered a third quarter retail profit of £273m, up from £240m last year and £10m ahead of Investec's (and consensus) expectations. However, the broker notes a "surprising" fall in profits in Poland."We have however cut our outer year forecasts in anticipation of negative LFLs [like-for-likes] in France next year, albeit mitigated by continuing direct sourcing benefits," the broker said.As such, the target price is cut from 245p to 235p.Kingfisher was among the best performing stocks on the FTSE 100 on Thursday, trading 3.2% up at 263.8p by 11:09.BC