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Feb 8 2018, 06:30 GMT
Despite concerns about its UK exposure, France has been the major drag on Kingfisher’s profitability over the past six years. ‘Fixing’ France therefore represents the group’s greatest opportunity, and we believe its French prospects deserve more attention. In this report, we analyse its weak historical performance, what it must do to improve its proposition and the size of the future opportunity. We conclude that Kingfisher can improve France beyond current expectations. Despite recent strong performance, expectations for the stock remain muted. We therefore reiterate our ‘Outperform’ rating and increase our price target to £3.90.