MARKET TALK: Investec Ups AB Foods To Buy From Hold

6th Jul 2010 07:23

0623 GMT [Dow Jones] Investec Securities upgrades AB Foods (ABF.LN) to buy from hold and raises target to 1080p from 1060p as it takes a more positive view of Primark's valuation ahead of the company's 3Q results on July 8. Increasingly sees Primark as a winning proposition and thinks profit growth at a rate of 12% to 14% per annum is sustainable on a five-year view. Says this merits a premium rating. Thinks the market's valuation on Primark of 7-8x Ebitda/15-16x PER is too low, and reckons 8-9x ebitda is more appropriate. Shares closed Monday at 947p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 06, 2010 02:23 ET (06:23 GMT)