Panmure Liberum, the City broker, has initiated coverage of Kingfisher with a buy recommendation and a target price of 475p, implying 44% upside from the FTSE 100 home improvement retailer's current share price of 331p.
The initiation, led by analysts Ben Hunt and Wayne Brown, draws parallels between Kingfisher and Next, the fashion retailer widely credited with executing one of the most successful omnichannel transformations in British retail.
The broker argues the market is undervaluing the profit potential from Kingfisher's trade and digital channels, particularly B&Q's fast-growing marketplace, which saw gross sales rise 44% in the year to January 2026 and now offers around 4.9 million stock-keeping units.
Screwfix, the trade convenience chain, continues to outperform, with like-for-like sales growth accelerating to 7.1% in the second quarter of the current financial year.
Panmure Liberum forecasts a three-year earnings per share compound annual growth rate of 13.6%, supported by ongoing share buybacks, with profit before tax expected to reach £716 million by January 2029 from £560 million in the year just ended.
The broker sets a 475p target derived from a discounted cash flow model assuming 2.5% annual sales growth and operating margins expanding to 7.5% by 2036.
France remains the principal uncertainty in the investment case, with retail margins stuck at around 2.5% against management's 5-7% ambition, though the analysts argue their forecasts do not require a full French recovery to be achieved.
UK and Ireland operations, which account for 55% of group earnings, consistently generate returns on capital above 15%.
Kingfisher operates more than 1,700 stores across six countries under the B&Q, Screwfix, Castorama and Brico Dépôt banners.
