Analysts at Goldman Sachs have upgraded Associated British Foods (ABF:LON) from a sell to a buy and bumped up their price target to 3120p from 2755p.

Expansion into the US and their £385 billion monthly retail sector is expected provide material improvements for ABF’s bottom line. The entry into the US market is expected to enhancement earnings to the tune of £720 million.

Goldman Sachs says the poor performance of the sugar business is largely priced in and the current share price offers an attractive entry for investors.

Shares in AB Foods trade 2.8% higher at 3033p at 14:40 in London trading.