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Analysts have upgraded this FTSE 100 stock to Buy. What should investors do?


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British -related foods (LSE: ABF) is the latest shares that are promoted from waiting to purchase. Panmure Liberum analysts have a positive vision about the company’s sugar business.

The share price increased by about 3 % as a result, which leads to FTSE 100 Today (July 14). I also think the stocks look interesting at the moment, but I have a completely different reason.

sugar

Panmure’s main focus is on the division of British sugar of foods. The profits in this part of the company were volatile and the unit is expected to lose in 2025.

It has been speculated that the company may try to sell business. Instead, I tried to fix problems by closing, restructuring and opening various operations.

Panmure analysts admired and raised their target price from 19 pounds to 26 pounds. This is a big difference with the share price currently at 21.09 pounds.

Sugar Business is interesting, but it is 13 % of sales, it is a relatively small part of the company’s total revenue. However, I have a similar positive point of view on its greater division horizons.

Premark

Primark retail discount represents about 47 % of total sales. The unit was recently low, as the last update was 2 % decreased in similar sales.

Many of this were driven by the United Kingdom, as similarity decreased by 4 %. But I think there is a good reason for investors optimistic that the next report will be more encouraging.

One of the reasons for the company was unusually warm weather. This can be a real challenge to retailers, as it weighs on the demand for seasonal goods.

Recently, however, the British weather was more like it. I think this can make a big difference in Primark and Associated British Foods.

weather

The weather in the UK was unusually warm recently. In investment circles, Greg Its weak sales have been attributed to a decrease in demand for baked goods during the heat wave.

However, British foods associated with them should be much stronger. I expect high temperatures to bring a stronger demand for summer ranges.

There is always a risk that non -seasonal weather in the future may be challenges. But I think there is a reason for optimism in the short term in the short term.

I expect the discount market to grow over time and Primark will have a strong competitive position in this industry. The short -term volatility is inevitable, but my long -term view is positive.

Final foolish thought

The shares of the associated British foods were inspiring for some time. But the improvements in sugar works as well as an easier PRIMARK trading environment can change this.

Even with the rise in the share price, the shares are traded by the price rate (P/E) less than 12. The current profit is a part of less than 3 %, which is not bad.

As a result, this may be a suitable time for investors to consider buying shares. I looked at a few other FTSE 100 shares today, but this is definitely one in my list.


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