London Biscuits up 1.25% after PublicInvest Research starts coverage

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KUALA LUMPUR (July 2): London Biscuits Bhd (LBB) rose 1.25% this morning after PublicInvest Research initiated coverage on LBB with an “Outperform”rating and target price of RM1.04 and said that having been in the market  for more than 15 years, LBB  had definitely made its name through its ready-to-eat cake selections.

At 9.37am, LBB rose one sen to 81 sen with 76,800 shares done.

In a note today, the research house said many had not realize that apart from its best-selling “London” cake line,  London Biscuits also had ranges of products including candy assortments, snacks confectionery and wafers,  of which some have been our own favourites at some point over the years.

“But that’s not why we like the stock.

“We initiate  coverage with an Outperform call and a 10x PE-derived target price of RM1.04, pegged to our FY16F EPS of 10.4sen,  confident that existing and potentially new shareholders are well-placed to benefit from its next level of growth,” it said.