Broker tips: Croda, Ladbrokes, Premier Foods

23rd Jul 2013 11:30

Interim results from Croda International may have just about met consensus forecasts, but Canaccord Genuity said it was slightly disappointed, leaving its 'sell' rating for the stock."The stock commands a premium that the fundamentals no longer justify. This is now the fourth straight quarter of below-trend operating profit growth. Returns on investment are impressive, but as growth slows the company is struggling to grow shareholder value."Morgan Stanley has upgraded its rating for bookmaker Ladbrokes from 'underweight' to 'equal weight' to reflect the ongoing strength in the UK online market.The target price for the stock has been lifted from 165p to 215p. However, the broker still prefers sector peer William Hill, rated 'overweight', and has raised its target price from 420p to 500p.Investec has reiterated its 'buy' rating for branded food producer and ingredients firm Premier Foods after the company reported 'very strong' first-half results on Tuesday.While the broker said this was a "great result" for Premier, it said: "Our offsetting concern is around growth, which decelerated in Q2 outside the Power Brands and where H1 profits benefitted from a reduction in marketing investment.""However, viewed in the round, we are happy to remain 'buyers' this morning."BC