Broker snap: Hilton downgraded after good run

14th Sep 2010 12:07

Results from meatpacker Hilton Food were in line with KBC Peel Hunt's expectations but the broker has downgraded its recommendation for the stock anyway after the share's recent good run."First half profits were up 12% to £11.5m, which was similar to our forecast. This was driven by a 5% increase in earnings before interest and tax (EBIT) and lower borrowing costs," KBC analyst Charles Hall noted. Sales also increased 5% and lagged behind volume growth of 11% as a result of lower raw material costs and a change in the sales mix.The share price is up more than 40% year to date and has risen above the broker's target price of 270p, as a result of which the recommendation has been changed from "buy" to "hold".