Berenberg Bank has downgraded its recommendation on Primark owner Associated British Foods (LON:ABF) to 'hold' from 'buy', following the 25 per cent share price rise since hitting a post-Brexit vote low of 2,350 pence on 27 June.
Analyst Fintan Ryan said: "We update our forecasts to reflect the prospects for a recovery in ABF's Sugar division profitability based on current market spot rates.
"On our new forecasts, ABF trades on 25x calendar 2017 P/E, which we believe is fair for a 9% three-year forward EPS CAGR.
"We raise our price target to GBp3,000 [from GBp2,760] but downgrade to Hold with limited further near-term upside."
At 2:22pm: (LON:ABF) Associated British Foods PLC share price was -14p at 3037p