Pz Cussons Share News (PZC)

Panmure Gordon doesn't think PZ Cussons' plans to expand its presence in food and nutrition in Nigeria will have any short-term impact on forecasts, but is a "potentially significant" growth platform for the medium term.The company best known in Britain as a soap-maker is establishing a food ingredients business as a joint venture (JV) with the large Asian agribusiness Wilmar International, which is listed in Singapore with a market cap of $29bn.PZ Cussons has the intention to develop a range of branded products including edible oils and nutritional spreads, and the broker says the the JV "will secure the availability, quality and cost of the oil ingredient through the construction of a palm oil refinery in Nigeria."However, even though the broker sees a significant potential for the group, this is a medium-term opportunity and won't have any material effect on its forecasts for 2011-2013.The broker notes that the shares are very close to its 400p target price, and continues with its 'hold' recommendation.