Associated British Foods Share Discussion Threads

[joeywald] 20/1/2017 14:41

What is going on here?

[philanderer] 17/1/2017 09:54

17th jan Liberum buy tp 3100p
17th jan JP Morgan overweight tp 3300p

reiterations today

[basil brush1] 17/1/2017 07:20

apparently conglomerates used to trade at a discount. it does not make sense for them to trade at a premium.

[gateside] 16/1/2017 13:35

That's the beauty of an old fashioned Conglomerate business.

[mazeltov] 16/1/2017 12:01

Maybe bad news for primark but will be offset by better profits for the food division,suppliers need customers and visa versatile,prices will not rise in a struggling market

[basil brush1] 16/1/2017 09:04

i do not trust them, they probably got mates who want to dump. the weak sterling is bad news for primark.

[philanderer] 13/1/2017 20:57

Associated British Foods : *HSBC raises AB Foods price target to 3350p - 'Buy'

[essentialinvestor] 13/1/2017 10:25

basil, made reference to the PER a number of times, would not add at this
level as mentioned yesterday.

Primark is a fantastic brand with hopefully strong international growth potential,
their future growth outlook is significantly stronger than NXT, just my take.

NXT is a well run business, which imv will present a cracking share price recovery
play at some stage.

The ABF PER demands perfect execution and even the slightest hint of disappointment,
as with yesterday, results in a sell off on this multiple.

[basil brush1] 13/1/2017 10:18

NEXT is a pure play while ABF is a conglomerate. are you saying that ABFs food businesses should be valued more highly than retail?

[essentialinvestor] 13/1/2017 07:56

It depends what the expectations were on their forecast modelling.



NXT and ABF are very different companies, ABF will not sell at 9x,
I'm pretty sure on that one! ).

[tlobs2] 13/1/2017 07:49

"...Losers included Associated British Foods, which slumped 122p to £25.76, as City analysts described the 11pcc increase in sales for Primark was "inadequate”.



Whoever stated that is clearly well out of his or her depth.

[basil brush1] 12/1/2017 23:42

NEXT is on 9X PE. why should this be any higher?

[philanderer] 12/1/2017 23:37

updated:

12th jan RBC outperform tp 3300p
12th jan Numis add tp 3128p
12th jan Shorecap hold -
12th jan Liberum buy tp 3100p
12th jan Jefferies hold tp 2450p

12th jan ++++ trading update ++++

[philanderer] 12/1/2017 21:00

Yep, weird day.


"...Losers included Associated British Foods, which slumped 122p to £25.76, as City analysts described the 11pcc increase in sales for Primark was "inadequate”.

Telegraph.

[tlobs2] 12/1/2017 18:58

Out all day today. Read the positive summary headlines and amazed at the slashing of the price. A little OTT IMHO.

I will be buying more at these prices.

[philanderer] 12/1/2017 16:25

Long term for me too EI. Had a top up today. Top management. One to tuck away .

PHTM digging me out of a hole today :-)

[essentialinvestor] 12/1/2017 16:23

ABF is a small long term holding for me.

Update looks solid enough, however the rating demands perfect execution.
Worth holding s few longer term imv so just tend to leave and forget this,
not sure I would initiate a new holding here though at this yield.

[philanderer] 12/1/2017 15:20

Fair play Salpara, I can`t see the justification in this shareprice reaction today. But hey what do I know.

Luck with your investments.

[salpara111] 12/1/2017 15:12

I'm out.
a few percent profit but just feel that sentiment is stacked against bricks and mortar clothing retailers going forward.

[philanderer] 12/1/2017 12:34

One more :-)

UBS .......


Q: How did the results compare vs expectations?

A: Primark LC sales were up 12% on a comparable week basis. Store openings are front end weighted this year and overall Primark LFL looks to be 0-1% with the UK around 2%. UK was a further share gain; Europe was held back by cannibalisation.

Q: What were the most noteworthy areas in the results?

A: Sugar profitability is rising strongly with LC revenue growth of 22% driven by stronger sugar prices and Illovo. There will also be a significant currency benefit particularly from the strength of the euro vs sterling.

Q: Has the company's outlook/guidance changed?

A: ABF still expects "progress" in adjusted operating profit and EPS in FY17.
Specifically, the Primark EBIT margin guidance of -200bp – primarily as a result of currency – is also unchanged, although this looks like a worst-case scenario.

[philanderer] 12/1/2017 10:53

Broker details ( bit long) ;-)


Veteran market commentator David Buik, of Panmure Gordon, has this morning's update from Associated British Foods was "ok" in terms of sugar and sweeteners, but adds an 11pc increase in sales for Primark was "inadequate for the shares to crack on".


Liberum analyst Robert Waldschmidt said he expects a "strong rebound" in full-year group profits in 2017, as the sugar business recovers and Primark continues it store roll-out programme.

"We estimate Primark can double sales and profits over the next five years," he added.

Robert Waldschmidt reckons ABF offers "compelling exposure" to secular growth trends in retail over the next 10 years.

He added: "ABF’s underlying fundamentals appear robust underpinning our conviction that profits will show solid recovery from FY’17. We think the shares can hold their rating as investors look through near-term headwinds towards the long-term."

Elsewhere, Charles Pick, of Numis, has three comments on ABF's trading update. He says:

Primark may have achieved modest overall like-for-like growth but there is no pointer for its No 2 market (12.2pc of sq ft.) Spain.

Primark peers Hennes & Mauritz and Inditex trade on respective multiples of 22.2x and 30.8x as per Bloomberg.

ABF results are heavily H2-loaded (last FY just 43.5pc of PBT arose in H1) so it is early days. Even so downgrades are improbable! The reverse is more likely.