Mr Kipling claims to make exceedingly good cakes, but the owner of the baked goods brand has not had exceedingly happy investors of late.
Premier Foods has had its woes of late. But the successful completion of a £1.1billion refinancing and sale of a stake in its Hovis bread business to very wealthy US investors have sweetened its fortunes.
And while its share price is up a tasty 38% over the year, brokers are starting to salivate at the prospect of further rises.
Clive Black at Shore Capital says its 59p price is “one of the clearest valuation anomalies in the UK consumer arena” and expects shares to “materially appreciate”.
Broker heavyweight Goldman Sachs also gave food for thought for investors this week as it upgraded Premier Foods ‘buy’ from ‘neutral’.
