Broker snap: PZ Cussons a 'hold'

25th Jan 2011 12:15

Panmure Gordon notes that PZ Cussons' interim results were broadly in line with forecasts, but with the stock trading close to its target price, the broker retains its 'hold' rating on the consumer products group.A 3.4% rise in pre-tax profit to £46.2m was slightly ahead of the broker's £45.7m estimate. As expected, the growth was driven by Asia, with Africa flat and Europe modestly down.While the outlook for the year is broadly unchanged, the broker says that with rising raw materials prices and the consumer environment remaining difficult, "It is prudent to trim our full-year pre-tax profit forecasts from £117m to £113m." The broker expects a 15% profit growth in 2012.A 400p target price is confirmed.