MARKET TALK: Evolution Cuts Associated British Foods

19th Jul 2010 08:14

0714 GMT [Dow Jones] Evolution Securities downgrades Associated British Foods (ABF.LN) to neutral from buy, but maintains its target price at 1090p. Its shares are up 30% since December relative to the FTSE 100, while earnings forecasts have been upgraded 13% and Evolution sees now as a good time to bank profits. It says the most recent IMS was more mixed than the four previous updates plus it sees limited upside to 2011 earnings, while Primark gross margin pressures are beginning to build. Evolution's 2011 EPS forecast is 74.9p vs consensus at 76.7p, reflecting the recent strength of sterling plus higher interest assumptions. Shares -0.4% at 1052p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 19, 2010 03:14 ET (07:14 GMT)