Kingfisher is an industry-leading home improvement retailer that is primed, ready for a recovery in “big-ticket” spending. Over the next three years we forecast c.40% growth in Adj. PBT and our upside scenario analysis suggests 90% potential growth. Whilst investors wait for this, we forecast a 10%+ FCF yield and substantial cash returns. Hence, trading on only c.10x cal 2026 PER, we see scope for a significant re-rating from this point in the economic cycle. We initiate coverage with a 340p Fair Value based on 12.5x cal 2026 PER and c.3.5% dividend yield.