JPMorgan Chase & Co. Cuts Associated British Foods (LON:ABF) Price Target to GBX 1,645

Associated British Foods (LON:ABF) had its price target reduced by JPMorgan Chase & Co. from GBX 1,700 to GBX 1,645 in a research note published on Friday, Marketbeat Ratings reports. They currently have a neutral rating on the stock.

A number of other analysts have also recently weighed in on ABF. Jefferies Financial Group reaffirmed an “underperform” rating and set a GBX 1,650 price objective on shares of Associated British Foods in a research 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. Shore Capital Group restated a “hold” rating and set a GBX 2,010 price target on shares of Associated British Foods in a research note on Wednesday, September 9th. Citigroup increased their price target on Associated British Foods from GBX 1,330 to GBX 1,550 and gave the stock a “sell” rating in a report on Thursday, September 3rd. Finally, Deutsche Bank Aktiengesellschaft decreased their price target 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. Four equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and an average target price of GBX 1,800.71.

Associated British Foods Price Performance

Shares of ABF opened at GBX 1,843.50 on Friday. Associated British Foods has a fifty-two week low of GBX 1,729.45 and a fifty-two week high of GBX 2,359. The company has a market capitalization of £12.87 billion, a price-to-earnings ratio of 13.83, a price-to-earnings-growth ratio of 1.51 and a beta of 0.81. The firm has a 50-day simple moving average of GBX 2,029.66 and a 200-day simple moving average of GBX 1,925.91. The company has a debt-to-equity ratio of 32.63, a quick ratio of 0.93 and a current ratio of 1.51.

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

Associated British Foods News Summary

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

• Positive Sentiment: Primark to begin Great Britain home delivery: ABF’s retail division will offer home delivery to British customers for the first time. The move could expand Primark’s sales reach, improve convenience and provide a new source of digital revenue, although the initial financial benefit is uncertain. Primark to offer home delivery in Great Britain for first time
• Positive Sentiment: Full-year earnings expected ahead of forecasts: ABF reportedly expects adjusted earnings per share for the current financial year to exceed analyst expectations, while plans to separate Primark continue to progress. Grocery sales also increased as the Hovis integration gathered pace, supporting the company’s diversification beyond retail. ABF Expects FY Adjusted EPS Ahead of Forecast as Primark Demerger Plans Progress ABF grocery sales rise as Hovis integration gathers pace
• Neutral Sentiment: Mixed broker view: Shore Capital reaffirmed its “hold” rating but set a GBX 2,010 price target. JPMorgan moved to “neutral” and cut its target from GBX 1,700 to GBX 1,645, indicating limited conviction in near-term upside. Shore Capital rating
• Negative Sentiment: Primark and sugar concerns weigh on sentiment: ABF indicated a weaker Primark sales outlook in Europe and higher expected losses from its sugar operations. The company also expects hot summer weather to hurt Twinings and Ovaltine performance, creating additional pressure on profit expectations. Associated British Foods Shares Plunge Amid Lower Primark Sales Outlook, Higher Sugar Loss Expectations Twinings and Ovaltine expected to impact profit

About Associated British Foods

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.