Deutsche Bank has upgraded Kingfisher, the FTSE 100 owner of B&Q and Screwfix, to 'hold' from 'sell', and raised its price target to 300p from 260p.
The move reverses a sell call made in December 2025, which had rested on UK cost pressures and a weaker economic backdrop.
Analyst Adam Cochrane said the earlier caution had largely played out, with earnings and the share price down only marginally since then.
He pointed to a sequential improvement in the broker's tracked industry data, even as the wider European consumer outlook stays soft.
Deutsche Bank lifted its full-year pre-tax profit forecast by 4% to £605 million.
That sits above the market consensus of £580 million, and marginally ahead of the mid-point of Kingfisher's own £565 million to £625 million guidance range.
The bank's first-half profit estimate of £412 million is well ahead of the £372 million consensus.
Cochrane said the improving data, set against the macro overhang, left little scope for Kingfisher to change its full-year guidance at the interim stage, supporting the more neutral stance.
The shares closed most recently at 300.6p, meaning the new target implies little further upside from current levels.
