Deutsche Bank has repeated a 'Sell' rating on Kingfisher (LSE:KGF) after the B&Q and Screwfix parent's latest investor update.
Tuesday's update was, as the German bank described it, weak but broadly in line with seasonal and big‑ticket downside fears.
DB analyst Adam Cochrane argues the trading pattern - ie Screwfix being resilient alongside softer performances at B&Q and continental businesses - supports management's decision to hold full‑year adjusted PBT guidance at £565-625m, and free‑cash‑flow guidance at £450-510m.
In a note, Deutsche highlighted the quarter's notable features, namely UK like‑for‑like sales reduced by less than expected (0.9% vs consensus of negative 1.8%) and added, with little in the way of endorsement, that there had been no material change since March in the dip in consumer confidence.
Cocharne added management will want to trade through the entire summer before revisiting guidance, which means the summer trading spell, and the half‑year results on 22 September would be among the next key tests of whether digital and trade momentum can offset B&Q cyclicality.
