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Investing.com - British home improvement retailer Kingfisher Plc. (LSE:KGF) received an upgrade from RBC Capital on Friday, with its rating raised from Sector Perform to Outperform.
RBC Capital also increased its price target for Kingfisher to GBP3.50 from GBP3.20, citing significant growth opportunities identified through store potential analysis conducted with its data science team, RBC Elements.
The analysis, which used geospatial and demographics analytics, revealed substantial white space opportunity for Kingfisher, particularly for infill locations in the UK and Poland, while the company is expected to focus on restructuring its store network in France.
RBC Capital noted that Kingfisher believes its total addressable market is £160 billion, compared to its current sales of approximately £13 billion, indicating substantial room for growth.
The investment bank calculated that every 1 percentage point addition to its long-term sales compound annual growth rate of 1.5% would add approximately 25 pence to its discounted cash flow value of 340 pence for the stock.
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