Kingfisher - Still in the sweet spot

Davy Research
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Kingfisher’s revival continues. Like-for-like revenues rose 17.4% year-on-year between August and October (Kingfisher’s fiscal Q3), with no let-up in the pace of expansion given the organic growth rate was 16.6% from the start of August to September 19th. This was better than expected and the double-digit rate of increase in revenues has continued thus far into November. Current year earnings estimates have been raised on a number of occasions in recent months and we expect this to continue. The latest company compiled consensus underlying the pre-tax forecast for the year to end-January is £747m, but this is now likely to move towards £800m. This also points to significant upside to our current forecast of £705m.