Broker snap: AB Foods looks attractive at current levels, says Prime Markets

12th Sep 2011 11:12

With a company-wide outperformance and record profits expected at Associated British Foods (AB Foods), the foods group which also owns the Primark retail chain, Prime Markets has maintained its buy recommendation on the stock.AB Foods released its pre-close trading statement on Monday morning in regards to the 52 weeks ending 17 September, saying that adjusted operating profit in the second half will be in line with expectations but net interest expense will be higher, due to the higher level of average net borrowings. "Although H2 net interest expense will be higher, Prime Markets believes the exceptionally strong company-wide trading performances will render any concerns here almost meaningless, particularly after the general sell-off in August, which leaves the shares looking very attractive at the current 1,070p," said the head of dealing at Prime Markets, Richard Curr.The target price is set at 1,135p.Shares were 0.47% (5p) lower at 1,065p by 11:04.BC