Premier Foods "buy," target price raised

01/02/07 - Panmure Gordon & Co

LONDON, January 2 (newratings.com) - Analyst Graham Jones of Panmure Gordon & Co maintains his "buy" rating on Premier Foods Plc (PFD-GBX), while raising his estimates for the company. The 12-month target price has been raised from 350p to 375p.

In a research note published this morning, the analyst mentions that the company’s earnings potential is expected to improve, following the recent acquisitions of RHM and Campbell Soup. Premier Foods is expected to witness earnings growth of 83% during 2006-2009. The EPS estimates for 2007 and 2008 have been raised from 23p to 24p and from 27.9p to 29.1p, respectively, to reflect RHM’s net pension finance income worth nearly £17 million.