Associated British Foods Share Discussion Threads

[philanderer] 13/2/2017 12:15

Investors piled into Associated British Foods, up 34p at 2534p, after Morgan Stanley raised its rating to overweight and said Primark, its prized asset, could grow profits by more than 40% next year.

That will happen if the discount clothes retailer hikes prices to compensate for a fall in margins as a result of Brexit, which Morgan Stanley analysts think will happen “in due course”.

“Primark remains an excellent long-term international growth story and its margin problems are temporary,” the investment bank argued.

[philanderer] 13/2/2017 09:28

*TRADERS: MORGAN STANLEY RAISES AB FOODS TO 'OVERWEIGHT'




edit:

increased price target of 2,800p, up from 2,650p.

[mbmiah] 10/2/2017 21:18

There's a chance we may see 2350 again......unfortunately

[mbmiah] 10/2/2017 11:11

Director share purchases, should help

[philanderer] 09/2/2017 11:43

yesterday`s note...

ABF has long-term fire power, says Shore Capital


Primark-owner Associated British Foods (ABF) may currently run on a ‘fulsome’ valuation, according to Shore Capital, but the analysts are optimistic about the future.

Analyst Clive Black retained his ‘hold’ recommendation on the stock, which yesterday rose 49p to close 2% up at £24.96.

‘ABF is a high quality company, in our view, with excellent management, financial constitution, organisation make up and long-term prospects. In recent times the share has perhaps over-run on over-exuberance with respect to the prospects of the best in class Primark discount apparel business; maybe more realism is now present,’ he said.

Black said the ‘hold’ recommendation reflected ‘the currently reasonably fulsome valuation and the more recent mellow news from Primark on margin investment against strong progress elsewhere in the group’. However, he added the company has ‘a powerful balance sheet and much fire power for long-term development’.

[philanderer] 08/2/2017 20:14

And another...

Take a sneak peek inside Colchester’s new Primark store ahead of the opening on Thursday, February 9

[philanderer] 08/2/2017 16:17

Better day for the shareprice .


'Silver Spoon to close Billington’s sugar packaging plant in Ipswich with loss of 50 jobs'

[mbmiah] 08/2/2017 15:44

That must have helpedThere might be a gap to fill though

[philanderer] 08/2/2017 14:28

Shore Capital reiterates 'hold'

[mbmiah] 06/2/2017 16:52

Didn't really help the sp

[philanderer] 06/2/2017 09:07

6th feb Liberum buy tp 3100p

reiterates

[philanderer] 03/2/2017 16:51

None whatsoever. Might need a bit of patience though ;-)

[mbmiah] 03/2/2017 16:35

Any reason for it not to go back to 3000?

[philanderer] 02/2/2017 17:32

Evening EI , you make it sound like I`m the fella who ate all the pies ;-D

[essentialinvestor] 02/2/2017 08:18

GRG and KGF are my favourite retailers, great hopes for both longer term.

Phil knows GRG very well.

ABF- pristine balance sheet, cash generative food business, Primark arguably
offers a nice longer term growth opportunity, just a case of how much you are willing
to pay in terms of multiple.

[mbmiah] 01/2/2017 20:10

Think maybe a stop loss at 2200?Next market update on the 27th Feb

[essentialinvestor] 01/2/2017 19:19

The forward PE is just under 23X.
That is still a pretty rich valuation in my book.

In 2012 ABF was available under 15x forward.

What you are seeing looks mainly sector rotation.

[bookbroker] 01/2/2017 19:15

A good thing the Weston family most likely pay no attention to the share price, over their ownership in principal they have seen remarkable growth in the business of ABF, in all due respect to Primark in recent years, it is nice for them to know that they will continue to receive large dividends annually for the foreseeable future!

[bookbroker] 01/2/2017 19:12

I comment on small cos. generally, and most likely a load of hogwash, but it is striking when you see the pressure that is reflected in the share price of large caps. like this and say EZJ. Different sectors completely but no business/conglomerate is immune to the stresses of today's business environment, particularly margin pressure as a result of numerous factors! Getting to the point though is the general markdowns in valuation, it is certainly making investing these days very difficult unless you are really in for the long haul, I mean like BT.A recently, and the loss of capital that can result due to weak trading statements, etc.

[essentialinvestor] 01/2/2017 18:51

Thanks Phil.

[essentialinvestor] 01/2/2017 16:08

This is really beginning to look ugly.

Anyone have TA support levels?, getting a little tempted.

[philanderer] 31/1/2017 18:43

Market report:

...retailers came under pressure after Morgan Stanley warned 2017 could be “a very tough” year for the sector. Geoff Ruddell, of Morgan Stanley, said: “We see a plausible scenario where 2017 could be as tough for the retailers as the 2008-9 recession.” Shares in Associated British Foods tumbled 45p to £23.86, Tesco shed 3.2p to 194.6p, Next fell 56p to £38.30, Debenhams slipped 0.5p to 52.6p and Marks & Spencer ended the day down 4.4p at 335.5p.