- Goldman Sachs has upgraded its recommendation on PZ Cussons [LON:PZC] to buy from neutral following the recent underperformance, which has seen the shares fall by around 20 per cent over the last three months and, in its opinion, leaves them at a compelling value.

The City heavyweight added: "Valuation is at 10-year sector-relative lows; if we assume the European and Asian divisions trade in line with our weighted average European HPC coverage (13.0x 2016E EV/EBITDA), the current share price implies under 7.0x EV/EBITDA for Africa.

"Conversely if we apply PZ Nigeria’s (separately listed subsidiary) valuation to the African division (12.0x) the stub is trading at a 25% discount to the European HPC sector."

Nevertheless, analyst have trimmed their price target to 355 pence a share (from 370 pence), implying around 20 per cent return potential.

At 2:03pm: [LON:PZC] PZ Cussons PLC share price was +6.65p at 305.55p

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