Broker tips: AB Foods, Carillion, Cluff Gold

12th Sep 2011 12:04

With a company-wide outperformance and record profits expected at Associated British Foods (AB Foods), the foods group which also owns the Primark retail chain, Prime Markets has maintained its buy recommendation on the stock."Although H2 net interest expense will be higher, Prime Markets believes the exceptionally strong company-wide trading performances will render any concerns here almost meaningless, particularly after the general sell-off in August, which leaves the shares looking very attractive at the current 1,070p," said the head of dealing at Prime Markets, Richard Curr.The target price is set at 1,135p.UBS has reduced its target price for FTSE 250 building group Carillion from 390p to 350p after raising its pensions deficit forecast.Nevertheless, forecasts have remained largely unchanged on the back of what UBS called a "resilient first half performance".However, the broker has scaled back its Support Services revenue estimates due a more cautious stance on the economy.A neutral rating is kept.Evolution Securities has kept its buy rating on West Africa-focused gold miner Cluff Gold, saying that the group's first half output was in line with expectations and full-year production looks on track.However, the broker has cut its earnings estimates from 6.5 cents a share to 3.6 cents a share to account for higher costs.However, "The fact that 16,000oz of gold have been produced during July and August means that the group therefore only has to produce c22,000oz in the last four months of the year which looks achievable to us," said analyst Louise Collinge.The target price is 155p.BC