Associated British Foods (LON:ABF) Stock Rating Reaffirmed as Underperform by Jefferies Financial Group

Key Points

• Jefferies reaffirmed its Underperform rating on Associated British Foods and set a GBX 1,650 price target, implying 15.1% downside from the current share price.
• Analyst sentiment is cautious: MarketBeat reports an average rating of “Reduce” and an average price target of GBX 1,782.14, with five Hold ratings and two Sell ratings.
• Recent business pressures include weaker Primark sales and a slump in Sugar; ABF reported a 13% fall in adjusted operating profit and warned of a further full-year decline.

Associated British Foods (LON:ABF - Get Free Report)'s stock had its "underperform" rating reaffirmed by research analysts at Jefferies Financial Group in a research report issued on Wednesday, Digital Look reports. They currently have a GBX 1,650 price objective on the stock. Jefferies Financial Group's target price suggests a potential downside of 15.10% from the company's current price.

A number of other research analysts also recently issued reports on ABF. Citigroup decreased their price objective on Associated British Foods from GBX 1,550 to GBX 1,520 and set a "sector perform" rating for the company in a report on Wednesday, September 23rd. Shore Capital Group restated a "hold" rating and issued a GBX 1,910 target price on shares of Associated British Foods in a research note on Tuesday, October 6th. Finally, JPMorgan Chase & Co. reduced their price target on Associated British Foods from GBX 1,700 to GBX 1,645 and set a "neutral" rating for the company in a research report on Friday, September 11th. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of GBX 1,782.14.

Associated British Foods Price Performance

ABF stock opened at GBX 1,943.50 on Wednesday. The stock has a 50-day moving average price of GBX 1,911.35 and a two-hundred day moving average price of GBX 1,915.42. Associated British Foods has a 1 year low of GBX 1,729.45 and a 1 year high of GBX 2,294. The stock has a market cap of £13.57 billion, a PE ratio of 14.58, a price-to-earnings-growth ratio of 1.51 and a beta of 0.81. The company has a current ratio of 1.51, a quick ratio of 0.93 and a debt-to-equity ratio of 32.63.

Associated British Foods (LON:ABF - Get Free Report) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported GBX 156 EPS for the quarter. The company had revenue of GBX 1,958.20 billion for the quarter. Associated British Foods had a return on equity of 8.44% and a net margin of 4.89%. Equities analysts forecast that Associated British Foods will post 188.10 EPS for the current fiscal year.

More Associated British Foods News

Here are the key news stories impacting Associated British Foods this week:

• Positive Sentiment: Group revenue increased, providing some resilience despite pressure in parts of the business. Grocery and other food operations may help cushion weakness in Primark and Sugar. Primark Owner AB Foods’ Revenue Rises Despite Sugar, Grocery Pressure
• Neutral Sentiment: ABF is working to strengthen Primark ahead of a possible separation from the wider group. A demerger could sharpen the businesses’ focus, though its eventual value depends on execution and Primark’s trading performance. Primark sales slip as ABF races to strengthen retailer ahead of demerger
• Negative Sentiment: Adjusted operating profit fell 13% to £1.51 billion. Primark’s slower sales and a slump in Sugar weighed on results, while the company warned of a further full-year profit decline—raising concern about near-term earnings momentum. Associated British Foods Reports 13% Fall in Adjusted Operating Profit
• Negative Sentiment: Reports say Primark trading has softened amid a challenging fast-fashion market. Weakness at the retailer adds to pressure from Sugar and supports expectations of another year of lower group profit. Penneys owner ABF forecasts further profit decline as fast-fashion sales slow

Associated British Foods Company Profile

Associated British Foods is a diversified international food, ingredients and retail group with sales of £13.9bn, 128,000 employees and operations in 53 countries across Europe, Africa, the Americas, Asia and Australia. Our purpose is to provide safe, nutritious, affordable food, and clothing that is great value for money. With the breadth of our business, our brands and global reach, ABF aims to consistently deliver value to its stakeholders. Our business is split into five segments: Grocery; Sugar; Agriculture; Ingredients; and Retail.

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