Associated British Foods (LON:ABF) Shares Down 10.4% Following Analyst Downgrade

Shares of Associated British Foods plc (LON:ABF) dropped 10.4% during mid-day trading on Thursday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from GBX 2,100 to GBX 1,925. Deutsche Bank Aktiengesellschaft currently has a hold rating on the stock. Associated British Foods traded as low as GBX 1,844 and last traded at GBX 1,926.58. Approximately 486,813,688 shares traded hands during mid-day trading, an increase of 363% from the average daily volume of 105,192,828 shares. The stock had previously closed at GBX 2,151.

Other equities research analysts have also recently issued reports about the stock. Jefferies Financial Group reaffirmed an “underperform” rating and set a GBX 1,650 price target on shares of Associated British Foods in a research report on Friday. Shore Capital lowered shares of Associated British Foods to a “hold” rating in a research report on Friday. JPMorgan Chase & Co. cut their price target on shares of Associated British Foods from GBX 2,095 to GBX 1,940 and set a “neutral” rating for the company in a research note on Friday. Finally, Citigroup boosted their price objective on shares of Associated British Foods from GBX 1,830 to GBX 1,840 and gave the stock a “sell” rating in a research note on Monday, November 10th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of GBX 1,931.

Insider Buying and Selling at Associated British Foods

In other news, insider Eoin Tonge sold 34,818 shares of the stock in a transaction on Monday, November 17th. The stock was sold at an average price of GBX 2,103, for a total transaction of £732,222.54. Also, insider George G. Weston sold 43,660 shares of the company’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of GBX 2,103, for a total transaction of £918,169.80. 1.50% of the stock is owned by company insiders.

Key Stories Impacting Associated British Foods

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

• Neutral Sentiment: CMA has accepted ABF and Hovis’s request to jump to Phase 2 of the merger investigation — this speeds the formal review process but confirms the takeover will face detailed competition scrutiny. CMA accepts joint ABF/Hovis request to fast-track merger investigation
• Neutral Sentiment: ABF and Hovis formally asked the UK regulator to fast‑track the takeover review — demonstrates the parties want to shorten uncertainty, but it also signals a higher probability of a contested/complex review. ABF, Hovis ask UK regulator to fast-track takeover review
• Negative Sentiment: Primark issued a profit warning and reported weaker fashion & beauty holiday sales, driving the initial sell‑off — Primark is a major earnings driver for ABF, so deterioration in its trading meaningfully lowers near‑term profit visibility. Associated British Foods Shares Plunge as Primark Weakness Weighs on Outlook
• Negative Sentiment: Shares plunged roughly double‑digits after the Primark profit warning; that sharp move has triggered analyst re‑ratings and momentum selling. Associated British Foods (LON:ABF) Stock Price Down 10.4% – Here’s Why
• Negative Sentiment: Jefferies reaffirmed an “underperform” stance and set a GBX 1,650 target — a clear bearish signal from a major broker. Jefferies underperform / PT GBX 1,650
• Negative Sentiment: JPMorgan cut its price target from GBX 2,095 to GBX 1,940 and moved to “neutral”, and Deutsche Bank lowered its PT from GBX 2,100 to GBX 1,925 (now “hold”) — these cuts reduce analyst support and can pressure the stock further. JPMorgan & Deutsche price target cuts
• Negative Sentiment: Shore Capital downgraded ABF to “hold”, adding to the wave of less‑constructive broker views. Shore Capital downgrade

Associated British Foods Stock Up 0.5%

The company has a current ratio of 1.78, a quick ratio of 0.93 and a debt-to-equity ratio of 32.88. The stock’s 50-day moving average price is GBX 2,132.80 and its 200-day moving average price is GBX 2,147.53. The stock has a market cap of £13.15 billion, a price-to-earnings ratio of 13.13, a P/E/G ratio of 1.51 and a beta of 1.24.

Associated British Foods (LON:ABF) last issued its earnings results on Tuesday, November 4th. The company reported GBX 174.90 earnings per share (EPS) for the quarter. Associated British Foods had a net margin of 7.25% and a return on equity of 13.07%. On average, sell-side analysts expect that Associated British Foods plc will post 188.0990415 earnings per share for the current year.

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.