Proactive Investors - Shares Premier Foods PLC jumped almost 11% in early trade after the OXO stock cubes and Mr Kipling cakes maker raised its outlook for the current year.
Citing the strength of its grocery business, the group announced pre-tax profits would be £135mln for the year to April 1, up 10% year on year.
“Not only is the performance encouraging, but it is also notable that it has come three weeks ahead of the year-end,” said Peel Hunt in a note to clients.
“In addition, we see this as a trend given that the 2H [second half] acceleration is continuing. This gives increased confidence in the longer-term performance.”
The broker repeated its ‘buy’ recommendation and 145p a share price target.
Mid-morning the stock was changing hands for 127.6p for a gain of 12.6p.
Of the three banks and brokerages logged as following Premier Foods all are positive on the company and its prospects. The consensus price target is 138p.