Broker snap: Kingfisher to shake off the rain, says Jefferies

In a preview of Kingfisher's second-quarter update next week, Jefferies has retained its 'buy' recommendation and 360p target price for the do-it-yourself retailer.The broker is expecting a "solid' quarterly performance even though the UK saw triple the historical average number of rainy days and poor weather was also experienced in France."Despite these challenges, we estimate like-for-like (LFL) progress of c.1% in both of Kingfisher's core markets, with broadly unchanged gross margin for the group (slightly negative in the UK, slightly positive in France). Combined with strict cost control, we see Q2 group sales of -2.8% (+3.6% ex-currency)."The group's B&Q chain is expected to see LFL growth of 0.7% while Screwfix is anticipated to see growth of 8%.The stock is trading at 10 times current-year earnings.Jefferies said: "The group's resilience in the face of adversity highlights a continued ability to offset a challenging backdrop. With the UK picture likely to improve from here (note Green Deal launch in October) and plenty of self-help still available, the stock remains a 'buy'."By 11:00 on Friday, shares were trading 1.2% higher at 269.2p.BC