Sector movers: PZ Cussons, Burberry lift personal goods sector higher

2nd Jul 2013 15:18

Decent gains from consumer-products manufacturer PZ Cussons (PZC) and British luxury brand Burberry were lifting the personal goods sector higher on Tuesday afternoon.The £42.2m acquisition of baby-foods group Rafferty's Garden by PZC was well-received by the market today, with shares in the Imperial Leather and Carex owner up 4.7% at 371.7p.Rafferty's Garden is a leading brand in the Australian wet baby-food market after having taken market share from Heinz over the past few years.Panmure Gordon was also providing a lift to PZC today after upgrading its rating on the stock from 'hold' to 'buy'. The broker said that this was an "attractive entry" for the company into the food and nutrition market in the Asia Pacific region and would help with its international roll-out.Meanwhile, sector heavyweight Burberry received a boost by HSBC which raised its recommendation from 'neutral' to 'overweight', citing easing concerns about the integration of the company's new beauty division and Japanese business.The broker lifted its target price for the stock from 1,530p to 1,750p, highlighting that the shares no longer trade at a premium to other luxury peers.The stock was up 3.0% at 1,406p in afternoon trade.