UBS has given Associated British Foods a buy rating and lifted its price target to 2,890p, based on a stellar performance from Primark. UBS said the low-priced “fast fashion” chain was being rolled out throughout Europe and its first French store opening was one of its best to date.
Peel Hunt has reduced its forecasts for December this year by four per cent and retained its sell rating for Rentokil. Analysts said they were concerned about its “ability to generate sustainable and consistent organic revenue growth” and saw better opportunities within the sector.
Barclays has raised it price target to 625p and said the shares could outperform. Analysts said “margins at the top end of the peer group can expand further, the balance sheet is strong, and we estimate the company will grow its dividend at 10 per cent per annum.”