MARKET TALK: Exane BNP Lowers Premier Foods To Underperform

26th Jul 2010 13:57

1257 GMT [Dow Jones] Exane BNP Paribas cuts Premier Foods (PFD.LN) to underperform from neutral and cuts target price to 17p from 28p. Says that while Premier does generate impressive underlying cash flows, when placed against the huge liabilities that it faces, "we believe that the residual value for equity holders is at best reasonably close to the current share price." Says that it is less CEO, Robert Schofield, and more CFO, Jim Smart, who is the primary determinant of Premier's equity value at present. "While sensible steps like closing the pension scheme to new entrants would help to alleviate further headaches, we struggle to see a speedy resolution to current balance sheet woes," it adds. Shares -1.2% at 21p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 26, 2010 08:57 ET (12:57 GMT)