Analyst Note
| Matthew Donen, CFA |No-moat Kingfisher’s third-quarter trading update continued to reveal the favorable trend toward do-it-yourself, or DIY, activities as more time is being spent indoors. Year-to-date sales numbers are better than we had initially forecast, although our fair value estimate remains unchanged at GBP 2.92 ($7.3 for ADR) per share, as we don’t expect this growth to be extrapolated going forward. Kingfisher’s share price has been on a ride this year, having almost tripled from its March lows before today’s results, because DIY spending has been a major beneficiary of lockdowns. Shares are currently fairly valued.