Kingfisher Slumps to Bottom of FTSE 100 Amid Deutsche Bank Downgrade

Kingfisher shares fell 4.5% in the FTSE 100 index after Deutsche Bank downgraded its recommendation from 'hold' to 'ell' and lowered its target price from 320p to 280p. The broker anticipates a slowdown in consumer spending due to fears of unemployment and decelerating wage growth, which will reduce "non-essential" consumption. Retail sales have benefited from favorable weather conditions, but consumer anxiety remains high. Kingfisher stock has fallen by over 8% YTD.

Kingfisher shares were the second-biggest faller in the FTSE 100 index on Tuesday morning on the London Stock Exchange, after Deutsche Bank downgraded its recommendation on the British DIY retailer from 'hold' to 'sell' [1]. The broker also lowered its target price from 320 pence to 280 pence, citing concerns over a slowdown in consumer spending due to fears of unemployment and decelerating wage growth.

The broker noted that while favorable weather conditions have boosted retail sales, consumer anxiety remains high. Deutsche Bank forecasts a slowdown in consumer spending, with growth expected to be 3% in H2 compared to +7% in H1. This is expected to have a significant impact on "non-essential" consumption, which is a key revenue driver for Kingfisher.

At around 11am (London time), Kingfisher was down 4.5%, while the FTSE 100 was down 0.6%. The stock has now fallen by over 8% year-to-date (YTD).

The downgrade comes amidst broader market volatility, with stocks falling across the board due to geopolitical tensions and economic uncertainty [2]. The U.S. dollar was also under pressure after President Trump's move to fire Fed governor Lisa Cook, which raised concerns about the Fed's independence and market confidence.

Investors are keeping a close eye on Kingfisher's performance, as the company's success is heavily dependent on consumer spending and demand for DIY products. The downgrade by Deutsche Bank is a significant setback for the retailer, which will need to navigate a challenging economic environment in the coming months.

References:
[1] https://www.marketscreener.com/news/kingfisher-at-the-bottom-of-ftse-100-as-deutsche-bank-downgrades-to-sell-ce7c50d9d98ffe24
[2] https://www.marketscreener.com/news/european-midday-briefing-stocks-fall-as-trump-moves-to-oust-fed-gov-lisa-cook-ce7c50d9d98af626