Broker snap: UBS downgrades Kingfisher to 'neutral'

30th Nov 2012 09:49

UBS has lowered its rating for B&Q and Screwfix owner Kingfisher from 'buy' to 'neutral' and reduced its target price from 300p to 290p, citing near-term risks.The company reported yesterday that third-quarter retail profit came in at £257m, down 6% year-on-year and worse than the £265m that UBS was forecasting. On a local currency basis, the bottom line was flat.The broker said: "In most markets DIY demand remains depressed by a mix of low consumer confidence and weak housing markets, affecting big ticket and trade sales in particular. "While the UK may show some stability next year if mortgage lending improves, there are no signs yet that Continental Europe will follow suit."UBS has cut its full-year profit before tax (PBT) forecast from £750m to £725m on the back of a weaker sales outlook. It predicts a fourth-quarter like-for-like sales decline of 2% at B&Q, -4% in France and -3% in Poland.Shares were down 0.57% at 277.4p in mid-morning trade.BC