BEST OF THE BROKERS
KBC peel Hunt say that Cranswick’s success story this year is “more than just a BBQ boost” – although the hot weather has provided a boost to the sale of sausages – but also because of new business and the consumer switchover to beef and lamb products. After meeting the firm for an update, the broker retains a “buy” rating.
Investec increased its forecasts and moved its recommendation on the stock to “buy”. The broker thinks the shares are oversold, although its unchanged target price of 130p still implies a considerable price-to-earnings discount to the sector, given future strategic issues. Consensus pre-tax profit forecasts are £75m for 2009/10.
Morgan Sindall’s trading remains in line with expectations, said Panmure Gordon, although the order book has eased slightly since May and competitive pressures are increasing in construction. The broker said that, after a strong run in the share price, it is time to lock in profits, and downgraded its recommendation from “buy” to “sell”.