MARKET TALK: Credit Suisse Cuts Premier Foods Price Target

21st Jun 2010 10:18

0918 GMT [Dow Jones] Credit Suisse cuts Premier Foods (PFD.LN) price target to 25p from 35p. Says things are far from easy for UK grocers, with food inflation all but gone, promotional levels up and no relief from raw material costs. With regards to the 1H, thinks operating profits will be down to GBP107M from GBP116M, reflecting higher restructuring, pension charges and marketing. Also thinks shareholders look "third in line" to the pension fund and banks. Says, "until their standing improves, it is very hard to recommend the equity." Keeps at hold. Shares are +1.8% at 22.1p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 21, 2010 05:18 ET (09:18 GMT)