MARKET TALK: Investec Downgrades Premier Foods To Hold Vs Buy

2nd Aug 2010 13:14

1214 GMT [Dow Jones] Investec downgrades Premier Foods (PFD.LN) to hold from buy and cuts the price target to 21p from 33p ahead of the 2Q results. Following a weak 1Q, says the 2Q shows few signs of improvement. Says: "Hopes of a much-needed 2H recovery look to be fading." Expects profits in bread to be under pressure again in 2H, due to rising wheat prices and aggression from competitor Associated British Foods (ABF.LN). Is also disappointed by the appointment of new chairman Ronnie Bell. Would have preferred to see a corporate turnaround specialist over a grocery industry figure. Shares +1.2% at 19p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires August 02, 2010 08:14 ET (12:14 GMT)