NFDS

Under previous management trading updates by Northern Foods (NFDS) were all too often accompanied by profit warnings but its latest update, under the stewardship of new CEO Stefan Barden shows it is recovering cost increases. Other food producers have been suffering due to raw cost hikes but Northern’s prospects for the year look encouraging. Andrew Saunders of Panmure Gordon believes earnings will grow to 9.7p, and has set a 130p price target, some 40% above their current 93p.

Shares says: On a PE of 11.9 falling to 9.9, further outperformance is likely. JM