MARKET TALK: AB Foods Strong, Primark Leads The Way -Panmure

8th Jul 2010 09:41

0841 GMT [Dow Jones] AB Foods' (ABF.LN) 3Q update shows another strong performance, with Primark leading the way, says Panmure Gordon. Notes Primark's sales showed only a slight slowdown on 1H, even though it's lapping much tougher comparisons. Says strong operational gearing means margins at Primark look better than expected, despite cost pressures. "There is widespread strength elsewhere in the group continuing the H1 pattern, although recent euro weakness and rain takes the edge off our sugar [division] forecasts." Brokerage nudges up its '10 pretax profit forecast to GBP795M from GBP790M. Buy rating and 1060p price target. Shares +1% at 990p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 08, 2010 04:41 ET (08:41 GMT)