Associated British Foods Share Discussion Threads

[philanderer] 24/3/2015 09:19

Bread thing this morning, supermarket price war.

Tesco cancelled Kingsmill contract last week as well

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Credit Suisse Group AG reissued their outperform rating on shares of Associated British Foods plc (LON:ABF) in a research report released on Tuesday morning. Credit Suisse Group AG currently has a 3250p price objective on the stock.

[philanderer] 23/3/2015 09:17

23rd march Liberum buy tp 3500p

reiterates

[philanderer] 19/3/2015 10:45

Why Unilever plc, Cranswick plc And Associated British Foods plc Are Terrific Picks For Your 2015 ISA

[philanderer] 18/3/2015 17:31

Lululemon, Primark sign as new tenants at Willow Grove Mall and Cherry Hill Mall

[philanderer] 18/3/2015 12:05

Primark begins its journey to Monks Cross

[philanderer] 16/3/2015 11:26

Liberum Capital reissued their buy rating on shares of Associated British Foods plc (LON:ABF) in a research note released on Monday morning. They currently have a 3500p target price on the stock.

[philanderer] 13/3/2015 20:37

Primark Preps for U.S. Domination With Pennsylvania Warehouse Lease

[philanderer] 10/3/2015 13:46

Associated British Foods plc (LON:ABF)‘s stock had its “outperform221; rating reissued by investment analysts at RBC Capital in a note issued to investors on Monday. They currently have a GBX 3500p target price on the stock

[philanderer] 04/3/2015 14:02

Eurozone retail sales jumped 1.1% in January, ahead of expectations.

Sharecast

[philanderer] 04/3/2015 08:38

Chartwise , still can`t quite break the downtrend.


'Primark plans Boston opening in September'

[philanderer] 03/3/2015 16:53

Primark to open Downtown Crossing store in September

[philanderer] 03/3/2015 13:02

Look magazine:


'Sneak Peek! Primark's Amazing High-Summer Drop'

[philanderer] 03/3/2015 12:59

Investec names AB Foods and Unilever as key picks in consumer staples sector

[gateside] 02/3/2015 22:07

Incorrect... Primark are already making a lot of overseas earnings in Europe.

European Primark stores:

Spain 40
Ireland 37
Germany 16
Netherlands 12
Portugal 8
France 5
Austria 3
Belgium 2

[zyzzyva] 02/3/2015 00:15

lol you are buying the overseas earnings before they are even properly established. what happens if it doesn't go to plan? and whatever happened to the old conglomerate discount?

conglomerate on a PE of 31 and 1.1%, priced to perfection imo

[gateside] 01/3/2015 23:36

The high PE is due to Primark, which means that ABF is a growth stock, but with the added security of a well established company with 3 other contrasting divisions making profits.

ABF has always had a low yield, when compared to other Consumer Goods companies, as money is reinvested in the business.

The summary of broker recs is:

Strong Buy 10
Buy 0
Neutral 7
Sell 0
Strong Sell 2

[zyzzyva] 01/3/2015 17:54

no denying that primark has been hugely successful. has outgrown the UK and is expanding overseas. following the path of many successful UK retailers. think tescos. many have stumbled when expanding overseas and nearly all have stumbled in the US. but ABF is trading on a PE of 31 with a 1,1% yield!

[philanderer] 27/2/2015 20:35

Zyzzyva , best not to trust anyone at all.


Telegraph market report:

"..Associated British Foods was lifted 76p to £31.25 after Barclays gave the stock an “overweight” recommendation. The expansion of the Primark business in Europe should drive growth, analysts at the broker said, adding that sugar profits may enjoy a recovery in 2016."





Indy:

Associated British Foods meanwhile enjoyed an upgrade from Citi thanks to the “best-in-class performance” of Primark. ABF climbed 76p to 3125p.

[zyzzyva] 27/2/2015 13:51

but the PE ratio is 30 and the dividend yield is only 1.2%. and what about all the negative points that Barclays brings up? how can you seriously trust these brokers?

[philanderer] 27/2/2015 13:14

Citi note ( Buy - target 3700p)


Sales and EBIT densities are rising and EBIT margins remain stable, as int’l sales accelerate — Primark has achieved best-in-class sales and EBIT/sqft (£516 and £69) without an internet offer and despite trading from a larger average store footprint tha n its peers. Impressively, these metrics have risen steadily over time both as the group’s store size has increased (2001-14: 16,000 to 36,000sqft) and as the lower population density European markets have risen from n il to c.30% of group sales. Primark is a proven, successful international retail format.

Free cashflow/sales in line with H&M/ITX, but space growth sharply higher — Despite operating with a modest c.13% EBIT margin vs H&M and Inditex 17-18%, Primark achieves a similar c.8% free cashflow/sales, due primarily to the group’s low 2% working capital/sales (e . g. H&M c.13%) . However, at c.+14% pa Primark’s 14-17E revenue growth from new space is sharply higher than international peers’ (H&M +10%, Inditex +7%), underpinning our higher valuation metrics(below).

Primark has the largest growth runway of the retailers under our coverage — At c.6%, Primark has the #2 UK market share position (space growth now +3% pa); however, while a proven success, the group’s international market share positions remain modest (c.2% across Germany, Spain, Portugal), and its global market position barely registers

[zyzzyva] 27/2/2015 10:24

is this really on a PE of 30?

[zyzzyva] 27/2/2015 10:24

wow isn't it amazing how they can turn so many negatives into an overweight recommendation
falling European sugar prices to drag on Sugar profits
investments at Primark to weigh on retail margins
continuing strong competition to impact Grocery
Add to this lacklustre picture the strengthening of the pound

[philanderer] 27/2/2015 09:05

Telegraph:

Primark-owner Associated British Foods lifted 1.8pc higher ot £31.03 by Barclays, which has started coverage with an "overweight" rating


The broker says:

A painful transition year, but laying strong foundations: ABF does not look set for a great FY15. We expect falling European sugar prices to drag on Sugar profits, investments at Primark to weigh on retail margins, and continuing strong competition to impact Grocery. Add to this lacklustre picture the strengthening of the pound, and it is no wonder the share has underperformed the staples year-to-date. However, we believe that ABF may finally enjoy a perfect alignment of the stars as the year unfolds. Our conviction is based on a detailed analysis of each of its divisions, which allows us to identify the various factors of profit growth, whether exogenous (Sugar), or endogenous (mix-driven in Grocery, Agriculture, or related to store expansion in Retail).