Associated British Foods (LON:ABF) Given “Underperform” Rating at Jefferies Financial Group

Associated British Foods (LON:ABF)‘s stock had its “underperform” rating reaffirmed by stock analysts at Jefferies Financial Group in a report issued on Wednesday, Digital Look reports. They presently have a GBX 1,650 target price on the stock. Jefferies Financial Group‘s price objective suggests a potential downside of 15.10% from the company’s current price.

Several other equities research analysts also recently commented on the company. JPMorgan Chase & Co. cut their price objective on Associated British Foods from GBX 1,700 to GBX 1,645 and set a “neutral” rating for the company in a report on Friday, September 11th. Citigroup decreased their target price on shares of Associated British Foods from GBX 1,550 to GBX 1,520 and set a “sector perform” rating for the company in a research note on Wednesday, September 23rd. Finally, Shore Capital Group restated a “hold” rating and set a GBX 1,910 target price on shares of Associated British Foods in a report on Tuesday, October 6th. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target of GBX 1,782.14.

Associated British Foods Stock Performance

Shares of LON ABF opened at GBX 1,943.50 on Wednesday. The stock has a 50 day moving average price of GBX 1,911.35 and a 200 day moving average price of GBX 1,915.42. Associated British Foods has a 52 week low of GBX 1,729.45 and a 52 week high of GBX 2,294. 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 stock has a market capitalization 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.

Associated British Foods (LON:ABF) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported GBX 156 earnings per share for the quarter. The firm had revenue of GBX 1,958.20 billion during the quarter. Associated British Foods had a return on equity of 8.44% and a net margin of 4.89%. Analysts predict that Associated British Foods will post 188.10 earnings per share for the current fiscal year.

Key Headlines Impacting Associated British Foods

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.