Primark owner Associated British Foods rallied to its highest level in more than three months after Jefferies upgraded its rating less than a week before it publishes its half-year results.

The US investment bank lifted its rating to “buy” from “hold” and hiked its price target from £24.50 to £31 citing continued strength in its sugar business and an expected turn in Primark’s margins later this year.

Analyst James Grzinic believes the timing of the upgrade is “favourable” as the group’s half year results on April 19 should confirm strong results thanks to a foreign exchange translation boost and a sugar rebound.