UK's Premier Foods at nearly 13-yr high on suspension of pension deficit payments

Peel Hunt

06/03/2024 09:27

** Shares of Premier Foods  PFD.L  up 17.8% at 157p; top pct
gainer on FTSE mid-cap index  .FTMC 
    ** Shares at highest level since June 2011
    ** Maker of Mr Kipling cakes says it has reached an
agreement with trustee of its pension scheme to suspend pension
deficit contribution payments from April 1
    ** Adds, it will benefit from 33 mln stg ($42 mln) increase
in free cash flow (FCF) for financial year ending March 29, 2025
    ** Peel Hunt increases target price to 200p from 163p    
    ** "Agreement transforms Premier Foods' FCF and  provides 
additional firepower to enhance growth" - Peel Hunt
    ** As of last close, stock up 21.5% in last 12 months



($1 = 0.7859 pounds)

 (Reporting by Zainab Saifuddin Saifee in Bengaluru)
 ((Zainab.SaifuddinSaifee@thomsonreuters.com; +91 8766460080;))