RHM "buy"

13.12.06 - Panmure Gordon & Co

LONDON, December 13 (newratings.com) - Analyst Graham Jones of Panmure Gordon & Co maintains his "buy" rating on RHM (RHM). The target price is set to 433p.

In a research note published this morning, the analyst mentions that the company has reported its 1H clean PBT and EBIT ahead of the estimates. A robust recovery in RHM?s Cakes segment offset the profit decline at Culinary Brands, the analyst says. The delay each month in achieving price rises is likely to cost the company £1 million of EBIT in 2H, Panmure Gordon & Co adds.