BUZZ-Kingfisher: RBC cuts to "underperform" on high earnings risk

** RBC cuts home improvement company Kingfisher (Frankfurt: 812861 - news) to "underperform" from "sector perform", saying it expects the earnings downgrade cycle to continue

** Analysts say co's major brand Castorama underperforms French "do-it-yourself" sector as it had weak digital offering, and its new unified offering has not resonated with customers

** Brokerage points to challenging outlook for French and UK housing markets, saying it will take time for customers to respond to Kingfisher's marketing initiatives

** Analysts also underscore that brand Castorama's like-for-like sales growth in Poland has recently faded

** RBC reduces its pretax profit and EPS forecasts for FY 2019/20 by around 4-6 pct for Kingfisher