Nomura has upgraded the DIY specialist a “buy” with a 320p target price in the view that it offers 40 per cent upside potential, with earnings growth driven by its sourcing initiatives, common ranges and strong execution despite short term economic worries. The broker says it sees scope for Kingfisher to achieve double-digit earnings growth until 2014-15.
Credit Suisse rates Ferrovial “outperform” with a €13.20 target price based on its sum of the parts analysis, but has taken the firm off its focus list as it has outperformed the Eurofirst 300 by 30 per cent and the infrastructure sector by 26 per cent. The broker still sees a 60 per cent upside to the target price but warns of risk from its plan to sell stakes in BAA and Stansted airport.
Panmure Gordon rates the housebuilder a “hold” with an 122p target price as while the business is moving in the right direction, it believes this is reflected in its current valuation by net asset value. Redrow trades on the highest valuation of its peers but holds £89m net debt, also the highest of its peers. Panmure says there are better value opportunities elsewhere at the present.