Kingfisher receives boost from Goldman Sachs

Kingfisher PLC, owner of B&Q and Screwfix in the UK and the Castorama and Brico Depot chains in France, received a much needed boost this morning, when Goldman Sachs upgraded its ratings from neutral to buy.

At the same time, the bank raised its target price for the PLC from 300p to 375p, indicating an 18% upside to the closing share price on Friday.

In a note to their clients, Goldman analysts said they believe the market is currently too cautious on the group’s 'One Kingfisher’ efficiency programme and estimate that the B&Q, Screwfix operator should be able to deliver £300m of cost savings by 2021, against consensus estimates of £250m, though company guidance is still at £500m.

Kingfisher share price initially moved up 2.2% to 317.0p, although at the time of publication, this had slipped back to 316.2p.

Source: Insight DIY Team

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