Kingfisher: Credit Suisse downgrades stock

(CercleFinance.com) - Credit Suisse has downgraded its rating on Kingfisher shares to 'neutral' (from 'outperform'), having reduced its 12-month target price for them to 247p (from 305p), due to its exposure to rising interest rates and the residential housing market.


"KGF is one of the few European retailers with minimal exposure to unhedged US$ costs, has strong pricing power and should be able to manage its inventory," the broker said, expressing optimism over the medium term.

However, Credit Suisse believes that "its property exposure tends to make Kingfisher a late-cycle stock with high operating leverage", and that it is "hard to see a positive catalyst over the next six months".


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