by Tara Cunningham, Business Reporter
[…] Market Report: Shares in Primark owner ABF jump on rating upgrade
Primark owner Associated British Foods became the standout performer on the FTSE 100 thanks to a rating upgrade.
RBC Capital Markets hiked its rating to “outperform” from “sector perform” and revised its price target upwards to £34 from £28 as it believes the blue chip stock is “regaining earnings momentum”, buoyed by Primark’s share gains and the recent strength in sugar prices.
Analysts at the bank see potential for low-cost retailer Primark to grow its store footprint in existing markets at a high single digit rate of store growth over the next ten years in existing markets.