AB Foods assumed with Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Grace Smalley upgraded Associated British Foods to Overweight from Equal Weight with a price target of 1,900 GBp, up from 1,850 GBp, after assuming coverage of the name. Revenue pressures and cost headwinds are "colliding," creating a "perfect storm" for apparel retail, Smalley tells investors in a research note. The analyst assumed coverage of the sector with a "cautious view." Smalley is cautious on clothing retail amid pressures on disposable incomes. AB Foods is her preferred name with H&M least-preferred.