Broker snap: Strong figures expected at Kingfisher

19th May 2011 12:10

Kingfisher, the B&Q and Screwfix owner, should report a strong first quarter, according to UBS, which raises its target price on the DIY retailer by 25p."We expect the first quarter should be another strong showing from Kingfisher, helped by strong seasonal sales in the UK, further momentum in France and strong recovery versus weak comparatives in Poland," the broker said.UBS estimates a 2.5% increase in like-for-like sales, the strongest figure in three years. Meanwhile, improved margins and loss reduction in China should produce a "geared" effect on earnings.The broker ups its 2011-12 pre-tax profit forecast by 2% to £768m, while 2012-13 numbers are raised by 5%.The target price now stands at 310p, up from 285p, and a 'buy' rating is maintained. ---BC