Broker snap: Headwinds persist at PZ Cussons

14th Apr 2011 12:41

Although trading in Asia remains strong for consumer products group PZ Cussons, Panmure Gordon draws attention to the persisting headwinds in Europe and Nigeria, and cuts its target price from 365p to 345p."The impact of ongoing weak European consumer markets coupled with high levels of input costs and disruption to the seasonal peak sales period in Nigeria due to the elections have weighed on group performance," said the broker.In light of these headwinds, Panmure prudently reduces its earnings (before interest tax, depreciation and amortisation) forecasts for Europe by £2m in both 2011 and 2012, and in Africa by £3m in 2011 and £1m in 2012."Asia's performance remains strong and in particular Indonesia, where the re-launch of Cussons Baby is driving profitable growth but the company does highlight a tightening of the consumer environment in Australia."A 'hold' rating is kept. ---bc