Shore Capital says surging Premier Foods can double25 Jun 2020 08:31
Premier Foods (PFD), the maker of Mr Kipling cakes, has had a âtransformationalâ year thanks to coronavirus lockdown increasing demand, says Shore Capital.
Analyst Clive Black reiterated his âbuyâ recommendation on the shares, which surged 14.9% to 68.5p yesterday.
He said the group had been âwandering around in zombie status for some years, burdened by overall indebtednessâ but underneath this âbalance sheet millstoneâ there has been âquite a good company seeking to show its true value for some timeâ.
Black said the groupâs current position can âdrive the re-rating much further stillâ.
âWe believe that Premierâs shares, which we placed on the âbuyâ roster on 1 April, have the scope to double again,â he said.