Nice - special dividend as well.
Suet |
Yes looking very good here.
Suet |
Results next tuesday |
Read across from NXT, upgrading their profit forecast. |
UK high street may be 'back in recession' as retail sales fall faster than thought
Economists had expected a fall of just 0.3%, after a rise of 0.4% in August. |
Mastey, wise words, the weather has certainly started to take a turn for the worse today. Or better depending how you look at it :-) |
In my view this is just short term noise. It was great to see the buy back sort of suspended just after results and re started when share price started falling .well done ABF and its advisors. Will benefit all shareholders going forward. The weather will turn as it always does and stock will shift without major discounts. The Primark team have more experience ( best in retail) and will not panic . Let’s hope all will see through short term and JP Morgan put option clients lose out. Or the cheap calls they have written get paid out and JP Morgan have to buy to cover |
As Skinny pointed out...
The warm weather may not have been helpful for clothing retailers, according to JPMorgan, as they launch their Autumn/ Winter ranges.
The bank points out that the autumn/winter selling period is relatively short, therefore often bringing pressure to start discounting early if there is a weak start to the season.
“We expect all of our clothing coverage to be impacted by the warm temperatures, but given the relative share price performance, we place Next and ABF (Primark) on negative aatalyst watch ahead of their updates on November 1 and November 7 respectively,” the broker said.
proactiveinvestors.co.uk |
 JPMorgan clearly looking for a lower entry point for one of their customers. They all seem to make it up as they go along.
These were the facts from the company just a month ago.....
Associated British Foods raised its fiscal 2023 guidance for the second time on the back of robust sales growth across its categories and said it expects clothing retailer Primark's margins to improve in fiscal 2024.
The U.K. conglomerate said Tuesday that it expects adjusted operating profit--the company's preferred metric, which strips out exceptional and other one-off items--for the year ending Sept. 16 to be slightly better than previous expectations, which saw profit moderately ahead of last year's 1.435 billion pounds ($1.79 billion).
The FTSE 100 listed company said Primark revenue is anticipated to be GBP9.0 billion compared with GBP7.70 billion a year ago. Like-for-like sales growth is expected to be 9%. Primark sales growth has been driven by selective price increases, well-received ranges and strongly performing new stores, it said.
Primark's adjusted operating profit margin in the second half is expected to be slightly below 8%, and around 8% in the full fiscal 2023, with higher-than-expected stock loss from stores across the estate, and a modest amount of German restructuring costs.
The clothes retailer's adjusted operating profit margin for fiscal 2024 is expected to significantly improve on the back of lower material costs, the weakening of the U.S. dollar against sterling and the euro and lower freight costs, AB Foods said.
In the food segment, sugar's performance in the fourth quarter was better than expected, and adjusted operating profit for the full year is anticipated to be modestly above last year levels of GBP162 million. For fiscal 2024, the segment is expected make a substantial improvement in profitability, supported by an improvement in the performance of sugar.
The group added that it continues to manage inflation and drive sales despite the challenging macroeconomic backdrop. |
Could mean they have just opened a short and wish to drive the price down?
That figures 'cos i bought recently. Part of the justification was my research such as the below.
Simply Wall Street:
REWARDS
Trading at 33.8% below our estimate of its fair value
Earnings are forecast to grow 13.19% per year
RISK ANALYSIS
No risks detected for ABF from our risk checks. |
JPMorgan places AB Foods on 'negative catalyst watch'
Whatever that means! |
Looks like the upgrade did the trick. I can only assume Mr Market does not like this hot weather and its effect of autumn and winter clothes sales. |
So - we can expect 1500 then! |
RBC raises Associated British Foods price target to 2,500 (2,400) pence - 'outperform' |
Investec raises Associated British Foods to 'add' (hold) - price target 2,195 (1,912) pence
Bernstein raises Associated British Foods price target to 2,800 (2,600) pence - 'outperform' |
Barclays raises Associated British Foods price target to 2,400 (2,300) pence - 'equal weight'
Deutsche Bank cuts Associated British Foods to 'hold' (buy) - price target 2,260 (2,350) pence
Goldman Sachs raises Associated British Foods price target to 2,280 (2,140) pence - 'neutral' |
Analysts at investment bank Shore Capital raised their earnings per share forecast for 2024 by 8 per cent to 165p and argued that ABF is undervalued, "especially in a higher base rate environment".
The full-year results are scheduled for release on 7 November.
Investors Chronicle |
Following the update, Liberum Capital maintained its ‘buy’ rating on Associated British Foods with a £24 price target.
The broker pointed out the company has ‘passed through the worst of cost inflationary pressures and various factors are aligning that should drive a period of significant earnings growth. These will entail margin recovery at Primark, grocery and sugar with continued strong performance in ingredients.’
sharesmagazine.co.uk |
Market report
In the FTSE 100, Associated British Foods rose 6.7%.
The fast-fashion retailer, via the Primark store chain, and food manufacturer, said in its financial year ending September 16 it performed slightly better than previous expectations.
Looking ahead, AB Foods said it continues to trade well, managing inflation, recovering cash margin and continuing to drive sales in a challenging macroeconomic environment.
AJ Bell’s Russ Mould said its outlook ‘continues to be favourable.’
‘It is rolling out more shops, expanding a click and collect trial to include more products and it is pushing up prices where possible,’ Mould said.
‘Even the non-retail parts of its business are generally doing well, with the company reporting brighter prospects ahead.’ |
Splendid :-) |
They've done it again ........ "better than anticipated"
LOL |
Trading update tuesday |
Primark expands online shopping offer as part of plan to ‘transform’ digital presence |
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