Morgan Stanley has started covering the food-to-sugar conglomerate with an “overweight” rating and a target of 2,140p. The broker reckons ABF is one of the strongest growth firms in the European staple stocks, driven by Primark’s enormous sales increases.
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Canaccord Genuity keeps its “hold” recommendation and raises its target from 180p to 215p following strong half-year results from the insurer last month. The broker expects seven per cent earnings per share growth in the next two years, as well as higher dividend payments.
Jefferies has raised its rating to a “buy” and has boosted its target from 220p to 305p for the materials group formerly known as Yule Catto. The broker notes that Synthomer is one of just 28 firms in the FTSE 260 trading below 11 times their earnings, and thinks improvements in the European economy will lift the stock.