PZ Cussons rallies on Investec upgrade

9th Sep 2015 11:02

(ShareCast News) - PZ Cussons got a boost after Investec lifted the stock to 'buy' from 'hold', noting weakness in the shares since July."Whilst there remains a risk of further currency headwinds this year, we feel the stock price, at these low levels, is more than discounting a 15-20% devaluation," said Investec.It said PZ Cussons' 2015 results were resilient in the face of a number of challenges ranging from Ebola to slower growth in emerging markets and currency headwinds.It pointed out that management is well versed in navigating the challenges of emerging markets. Currency weakness has been a growth limiting factor and this could continue to influence the outcome for full-year 2016, said Investec.However, it argued that PZ Cussons remains committed to the longer-term opportunities, investing in its branded FMCG portfolio, with a growing emphasis on Food.Investec cut its price target to 350p from 374p.At 1109 BST, PZ Cussons shares were up 3.2% at 303.60p.