MARKET TALK: Deutsche Bank Raises AB Foods Price Target

9th Jul 2010 11:34

1034 GMT [Dow Jones] Deutsche Bank raises Associated British Foods (ABF.LN) target to 925p from 915p. Trading momentum held up through the third quarter, says Deutsche. It says 3Q sales are in line with expectations and a slight weakening in Primark like-for-like sales is offset by a better margin performance. Also a modest rise in Agriculture offsets a small cut to Spanish sugar profits. However Deutsche remains of the view that gross margin risk is building for next year. The bank sees better value elsewhere and so maintains a sell recommendation. Shares +0.7 at 1002p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 09, 2010 06:34 ET (10:34 GMT)