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Related British food (LSE: ABF) are the latest actions that will be updated with Hold to Buy. Analysts in Panmure Liberum have a positive view on a sugar company.
As a result, the price of the shares increased by about 3%, which leads FTSE 100 Today (July 14). I also think that the herds look compelling at the moment, but I have a completely different reason.
Sugar
The key target of Panmure is associated with British Foods Division Sugar. The profits in this part of the company were unstable, and the unit is expected that the loss in 2025.
It has been speculated that the company can try to sell the company. Instead, he tried to solve problems, closing, restructuring and opening various operations.
Panmure analysts are impressed and raised the target price of shares from 19 to £ 26. This is a substantial difference in the price of shares currently in the amount of $ 21.09.
Business Sugar is compelling, but with 13% sales it is a relatively compact part of the company’s general revenues. However, I have a similarly positive view on the prospects of its greatest division.
Primark
Primark retail discounts accounts for about 47% of total sales. The unit has recently achieved worse results, and the latest update recorded a 2% decrease in sales similar to reminding.
Many of them were powered by Great Britain, in which similar sales fell by 4%. But I think there is a good reason why investors will be optimists, that the next report will be more encouraging.
One of the reasons why the company cited was extremely hot autumn weather. This can be a real challenge for retail sellers, because it is at the request of seasonal goods.
Recently, however, the British weather was much more similar. And I think it can affect Primark and related British dishes.
Weather
The weather in Great Britain has been extremely hot lately. In investment circles, Greggs They attributed their recently destitute sales to lower demand for baking during the heat wave.
Related British food should, however, be in a much stronger position. I expect higher temperatures to bring a stronger demand for their summer bands.
There is always a risk that unjustified weather in the future can be a challenge. But I think there is a reason for optimism in both brief and long -term and long -term.
I expect that the discount fashion market is growing over time, and Primark has a forceful competitive position in this industry. Short -term variability is inevitable, but my long -term view is positive.
Last stupid thought
Associated British Foods Actions have been not inspiring for some time. But improvements in the sugar industry, as well as an easier commercial environment for Primark, can change this.
Even when the price of the shares becomes higher, shares trade in price to profit (P/E) below 12, and the current dividend performance is a fraction below 3%, which is not bad.
As a result, it can be a good time for investors to consider buying shares. At the moment I have an eye on several other FTSE 100 actions, but this one is definitely on my list.
