JPMorgan Chase & Co. Issues Pessimistic Forecast for Associated British Foods (LON:ABF) Stock Price

Key Points

• JPMorgan lowered Associated British Foods’ price target to GBX 1,645 from GBX 1,700 while maintaining a neutral rating, implying about 12.2% downside from the current price.
• Analyst sentiment remains cautious: ABF has a consensus “Reduce” rating, with four Hold and three Sell recommendations and an average target price of GBX 1,800.71.
• ABF faces mixed operating signals, including weaker European Primark performance, a larger expected sugar loss and weather-related pressure on Twinings and Ovaltine, despite an adjusted-EPS outlook ahead of forecasts and progress on potential Primark demerger plans.

Associated British Foods (LON:ABF - Get Free Report) had its target price dropped by analysts at JPMorgan Chase & Co. from GBX 1,700 to GBX 1,645 in a research note issued to investors on Friday, London Stock Exchange reports. The brokerage presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price target suggests a potential downside of 12.20% from the company's current price.

A number of other equities analysts have also recently issued reports on ABF. Deutsche Bank Aktiengesellschaft lowered their target price on Associated British Foods from GBX 1,925 to GBX 1,850 and set a "hold" rating for the company in a report on Tuesday, May 26th. Shore Capital Group restated a "hold" rating and issued a GBX 2,010 price target on shares of Associated British Foods in a research note on Wednesday. Jefferies Financial Group reaffirmed an "underperform" rating and set a GBX 1,650 target price on shares of Associated British Foods in a report on Wednesday, July 1st. UBS Group reissued a "neutral" rating and issued a GBX 2,050 target price on shares of Associated British Foods in a report on Friday, June 26th. Finally, Citigroup boosted their target price on shares of Associated British Foods from GBX 1,330 to GBX 1,550 and gave the stock a "sell" rating in a research note on Thursday, September 3rd. Four equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, Associated British Foods has a consensus rating of "Reduce" and an average target price of GBX 1,800.71.

Associated British Foods Stock Up 0.7%

ABF opened at GBX 1,873.50 on Friday. The firm has a market cap of £13.08 billion, a price-to-earnings ratio of 14.06, a PEG ratio of 1.51 and a beta of 0.81. Associated British Foods has a twelve month low of GBX 1,729.45 and a twelve month high of GBX 2,359. The company has a debt-to-equity ratio of 32.63, a quick ratio of 0.93 and a current ratio of 1.51. The firm's 50-day simple moving average is GBX 2,031.93 and its 200-day simple moving average is GBX 1,926.66.

Associated British Foods (LON:ABF - Get Free Report) last released its quarterly earnings results on Wednesday, June 17th. The company reported GBX 174.90 earnings per share for the quarter. Associated British Foods had a return on equity of 8.44% and a net margin of 4.89%.The firm had revenue of GBX 1,945.90 billion during the quarter. Equities research analysts anticipate that Associated British Foods will post 188.0990415 EPS for the current fiscal year.

Key Stories Impacting Associated British Foods

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

• Positive Sentiment: ABF expects full-year adjusted earnings per share to come in ahead of market forecasts. Progress on plans to separate or demerge Primark also provides a potential catalyst by highlighting the value of the fast-growing retail division. ABF Expects FY Adjusted EPS Ahead of Forecast as Primark Demerger Plans Progress
• Positive Sentiment: Primark plans to introduce home delivery in Great Britain, expanding its sales reach and potentially improving convenience and digital engagement. The initiative could support longer-term revenue growth, although its immediate financial contribution is uncertain. AB Foods' Primark to offer home delivery in Britain
• Positive Sentiment: Grocery sales are rising as the integration of Hovis progresses, suggesting benefits from the acquisition and improved execution in ABF’s food operations. ABF grocery sales rise as Hovis integration gathers pace
• Neutral Sentiment: Shore Capital reaffirmed its “hold” rating and set a GBX 2,010 price target, indicating limited conviction despite potential upside from the company’s restructuring and earnings outlook. Shore Capital reaffirms hold rating
• Negative Sentiment: ABF warned that Primark’s performance in Europe is weakening, leading to a lower sales outlook for the retailer. Because Primark is a major contributor to group earnings, the update has increased concern about near-term profit growth. ABF Shares Plunge on Weak Primark Performance in Europe
• Negative Sentiment: The sugar division is expected to produce a larger loss, adding pressure to group earnings and offsetting some of the strength in grocery and the positive adjusted-EPS outlook.
• Negative Sentiment: Unusually hot summer weather affected demand for Twinings tea and Ovaltine, creating an additional profit headwind in ABF’s branded grocery portfolio. Hot summer hits Twinings sales

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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