Kingfisher plc : Still attractive
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 297.7 | GBX 0 | GBX 290.9 | -100% |
The company reported full year sales up nearly 4% above $ 10,830 million and adjusted pre-tax profits up 20% above £800 million. More than 50% of its turnover was generated outside United Kingdom, especially in France where is market leader with its brand Castorama. Since early of the year the share well performed +20% but is still not expensive with a current price earnings ratio of 10.84 at discount to sector of more than 10%, according to Bloomberg’s data.
Technically the share ,after a strong acceleration, is currently in technical correction phase, which pushed the stock close to short-term support. This level could be offer a good entry point; in fact we expect a restart of bullish trend. This movement could be supported by moving averages’ direction. We could fix as first target a come back on short-term resistance of 314 GBp. Only level exceeding, could open the way to new targets. We suggest a stop loss at 291 GBp.