At 9:10 a.m., Premier Foods' shares were 4 pence firmer at 134-3/4, while the FTSE 250 index was up 42.9 points at 10,574.0.
In a statement earlier this morning, Britain's biggest food manufacturer said its trading profit for the 17 weeks ended April 26 is in line with its view, and that its expectations for the year remain unchanged.
It said group sales in the first four months of 2008 were up 6.3 percent, primarily reflecting the pricing action taken to recover the cost inflation experienced in the second half of 2007.
Reacting to the announcement, Merrill Lynch called the forecast "in-line" and "a relief" with the company appearing to have achieved bulk price rises needed to offset cost inflation, which is running in-line with Premier's year ahead expectations.
The broker has calculated a fair value price of 145 pence for the stock, saying risks include material and unrecoverable cost inflation and increased competitive pressures.
Meanwhile, Panmure Gordon also said the trading was in-line with its expectations and revealing no new problems, with a price rise in bread recently achieved.
The broker raises its target price on a more certain outlook, however, with profits progress remaining back-end weighted and seven factories due for closure by the year-end, it does not come without its risks and therefore it remains cautious. David.Brett@thomsonreuters.com dkb/slj
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
MMMM
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
|
|
