Proactive Investors - Citigroup (NYSE:C) has trimmed its forecasts for AB Foods (LON:ABF)' clothing arm Primark but raised its price target ahead of a pre-close trading statement on 12 September.
For the fourth quarter between June and September, Citi sees a constant currency sales improvement of 11% for Primark, comprising +6% like-for-like and 5% space.
The bank adds that this is a modest downgrade on its previous forecast of 7% like-for-like, leading to a clipping of the underlying profits forecast by £5 million to £1,485m (from £1,490m).
Even so, other changes to its valuation model bump up the target price to 2,100p from 2,000p, though the rating remains neutral.
Shares in AB Foods were up slightly at 1,997p.