Analysts at UBS have lifted their price target on do-it-yourself retailer Kingfisher on expectations that the purchase of French DIY chain Mr Bricolage offers greater scope to contribute to earnings than initially thought.The broker initially thought the transaction might be about 2% earnings accretive at the earnings per share level. Now it believes the deal may deliver even greater returns from converting the owned stores - which lost €13m last year - to the Brico format. Thus, converting 30 Bricos from the Mr Bricolage-owned estate, and assuming the average profitability of €1.3m per store is maintained, would result in approximately €40m in incremental profit. "The losses from the remaining owned stores could be removed either by terms improvement or from switching some to franchise." In turn, franchise profits could be funded by the greater returns to scale which resulting from the transaction. In the long-term that would amount to about a 7.5% increase in profits, or between €75-80m.""France could then be making over £500m profit per annum with little additional capital requirement, supporting the multi-year cash return plans," UBS adds. As a result of all of the above the Swiss broker raised its price target on the stock to 475p from 440p previously, while at the same time upgrading it to 'buy' from 'neutral'.AB