Thought I'd start my first ever moneyam.com thread:

Talk that Asda or Lowes might be considering a bid for the company.

KD.

Kingfisher downgraded
MoneyAM
Shares in Kingfisher have today been downgraded to 'sell' from 'hold' by Deutsche Bank.

This comes ahead of the retailer's third quarter results, due November 30th, which the broker thinks could lead to consensus estimate cuts.

In a research note to clients published this morning, Deutsche Bank noted that the shares have risen 13% in the last three months primarily due to hopes of a rapid recovery at its B&Q business, driven by re-formatting the B&Q Warehouses to deliver higher sales per square foot.

However, Deutsche Bank said that even if the reformats work and the UK DIY market recovers quicker than expected, the broker does not think B&Q's profits are likely to rebound as fast as the market expects.

It added that, due to around 20m of heavy pre-opening costs at B&Q that is not in its or market forecasts, the broker has cut its profit forecast for 2007-2008 to 470m from $494m.

The broker said Kingfisher's shares are ahead of events and it expects them to fall towards Deutsche Bank's new increased price target of 220p versus 215p previously as market profit forecasts are cut.

http://www.timesonline.co.uk/newspaper/0,,176-2471506,00.html

Kingfisher (LSE: KGF.L - news) closed 8.9 lower at 122.2 as JP Morgan cut the group to 'neutral' from 'overweight'.

JP Morgan said Kingfisher's B&Q unit faces major challenges in the first two quarters of 2008/2009 from the impact of the slowing housing market and adverse competition for showroom and seasonal, its two largest categories.

Kingfisher downgraded - Moneyam

HSBC has downgraded Kingfisher to neutral from overweight, cutting its price target to 145p from 200p.

In a note, the broker says that the retailer has had a UK overstocking problem and it said it has now also taken a more negative view on the speed of its upturn in China.

It leads the broker to cut its 2009-2010 forecasts by 14%, which it says drives its rating downgrade to 'neutral'.

Its lower price target of 145p reflects the peer group valuation, HSBC adds.

B&Q growth a boost for Kingfisher

Kingfisher gives a trading update on Thursday which could be the cue for another set of headlines about hard times on the High Street or it could prompt press articles about the stark difference in fortunes between the winners and the losers in the retail space; judging by its September update, Kingfisher is more likely to fall into the "winners" category, but a lot can change in two months

Kingfisher basks in autumn sunshine



{ 7:47, Thursday 1 December 2011

LONDON (Reuters) - Mild weather, market share gains and a drive to boost profit margins helped Kingfisher (Euronext: KFR.NX - news) , Europe (Chicago Options: ^REURUSD - news) 's biggest home improvements retailer, beat third-quarter earnings forecasts despite a tough economic backdrop.

The group, which runs B&Q in Britain as well as Castorama and Brico Depot in France, said on Thursday the short-term outlook for consumers in those markets remained challenging.

It was confident of coping, helped by a drive to improve profitability by buying more goods centrally, and directly, from cheaper manufacturing centres like China.

Many European retailers are struggling as disposable incomes are squeezed by rising prices, muted wages growth and austerity measures, and amid fears a euro zone debt crisis could plunge the region back into recession.

Kingfisher, which makes about 40 percent of its sales in both Britain and France, said retail profit rose 14 percent to 273 million pounds in the 13 weeks to October 29.

That compared with a forecast for 263 million pounds in a Reuters poll, and marked a slowdown from 18 percent growth in the first half.

Sales at stores open over a year rose 1.9 percent in France, broadly in line with expectations and down from 4.6 percent in the first half. Mild weather drove a strong rise in sales of outdoor products, with lawnmower sales up 17 percent.

Like-for-like sales on the same basis in Britain were down 0.9 percent, improving on a 1.8 percent decline in a first half disrupted by the closure of rival Focus DIY.

Garden furniture sales leapt 68 percent as Britons took advantage of autumn sunshine to make up for a wet summer.

Shares in Kingfisher, which runs around 900 stores in eight countries, have outperformed the STOXX Europe 600 retail index by 6 percent this year, They closed at 255.6 pence on Wednesday, valuing the business at about 6 billion pounds

We should have some trading news coming our way too, with Kingfisher the owner of B&Q and Screwfix -- giving us a fourth-quarter update on Thursday. Despite the retail hardships we've been experiencing, Kingfisher has been doing well, and rising profits for this year and next are expected.

On Thursday. Kingfisher is expected by broker Jefferies to give a solid second quarter update, despite the lousy weather recently. "A c.1% LFL [like-for-like] gain in both France and the UK should be taken well," the broker suggests. "We model for a broadly unchanged gross margin (reflecting range reviews and seasonal promotions in the UK, but sourcing progress in France) and strong cost control to allow for a broadly unchanged Q2 EBIT [second quarter earnings before interest and tax],"

Thursday has a retail theme with Kingfisher (Euronext: KFR.NX - news) , Halfords, Sports Direct (Frankfurt: A0MK5S - news) and Mothercare (LSE: MTC.L - news) all set to update the market. Do-it-yourself retailer Kingfisher is expected by broker Jefferies to give a solid second quarter update, despite the lousy weather recently. "A c.1% LFL [like-for-like] gain in both France and the UK should be taken well," the broker suggests. "We model for a broadly unchanged gross margin (reflecting range reviews and seasonal promotions in the UK, but sourcing progress in France) and strong cost control to allow for a broadly unchanged Q2 EBIT [second quarter earnings before interest and tax]," Jefferies says. The B&Q operations in the UK are tipped by Jefferies to show LFL growth of 0.7%, while Screwfix is seen increasing sales by 8%. In France, the broker is anticipating LFL gains of 1% at both Castorama and Brico. "Elsewhere internationally we expect softness in Poland (-2% LFL) and a tough China (-8% LFL given a shrinking property market), but strong progress in Russia and Turkey," the broker added.

Q1 Trading Update

Bank of America Merrill Lynch Neutral 355.10 355.10 290.00 375.00 Upgrades

Long KGF. Chart looks oversold and volume of buys to sells is convincing for the bull case. Fundys solid, plenty of cash. Self help scheme.

Q1 Trading Statement

European home improvement retailer Kingfisher on Wednesday said third quarter total sales rose 1.2% to £3.04bn in constant currency, while like-for-like sales were down 1.3% reflecting continued weak sales in its French Castorama business. The B&Q owner said it expected to grow gross margin after clearance in the UK, Poland and its Brico Dépôt unit France. "However the outlook for Castorama France is more uncertain given difficult trading and the ongoing impact of recent national demonstrations," the company said, adding that it was exiting Russia, Spain & Portugal to focus on markets "where we have, or can reach, a market leading position".