Investec upgrades Premier Foods to “buy”, in spite of only recently downgrading it to “hold”. It says the drop in the share price following its recent trading update, together with likely better news on bread, makes it a more attractive proposition once again. Maintains 40p target price. “The foundations are in place for better news in bread,” it adds.
Analysts at KBC Peel Hunt believe that the resilience of Holidaybreak’s education division is beginning to shine through. The broker believes that this will drive a re-rating of the group and therefore increases its target price by 60 per cent to 390p. KBC says that the outcome for the year is still dependent on late bookings in the camping division but recommends investors “buy” the stock.
Improved second quarter revenue growth at Britvic prompts Finncap to increase its target price on the stock from 317p to 330p. The broker maintains a “buy” rating, but warns that most of the pre-tax profit growth arose from lower finance charges due to the higher cost of new bank facilities not kicking in during the period reported. This will not be the case in the second half, it says.