Northern Foods - a Tasty Choice!

20.12.06 :-6, (114.75) downgraded to 'neutral' from 'outperform' by Credit Suisse on valuation grounds, dealers said. The broker said the share price has rallied to a level where the risk now outweighs the reward, suggesting investors should take a more guarded view. It upped its target price to 115 pence from 110. It added that Christmas is a crucial period for Northern Foods, and all too often has resulted in cautious January updates -- Credit Suisse highlighted the fact that four of the last five Januarys have had profit warnings. The Swiss broker also said that in the two businesses it tracks closely there are mixed fortunes. The biscuit market remains soft, and Fox continues to lose market share heavily yet, in stark contrast and despite the frozen pizza market remaining weak, Northern Foods Goodfella's brand continues to gain share significantly.