Cadbury Schweppes initiated with "buy"

11/28/05 - ING Financial Markets

LONDON, November 28 (newratings.com) - Analysts at ING Financial Markets initiate coverage of Cadbury Schweppes Plc (CBRY-GBX) with a "buy" rating. The 12-month target price is set to 625p.

In a research note published this morning, the analysts mention that the company is expected to issue a robust trading update during December, with underlying sales growth marginally higher than its long-term target of 3%-5%. Cadbury Schweppes' confectionery segment would be an important growth driver during 2006, since the company is gaining share of the important confectionery markets, the analysts say. The company is likely to utilize the proceeds from the recent disposal of its European beverages division to payoff debts, ING Financial Markets adds.