Ridiculous mark down of ABF today.just algo trading on the back of M&S et al numbers.
Anyway good news for long term holders as share buy backs become cheaper. Expect an excellent trading update on the 23rd. |
 Not like the BBC to talk the UK economy down. Miserable gets.
If you avoid the MSM and dig a bit deeper .....
Thursday 2 January 2014
John Lewis today publishes its five-week trading update, revealing that the retailer saw both bricks and clicks break records.
For the five weeks to 28 December 2013, total sales were £734m, 7.2 per cent up compared with last year, 6.9 per cent on a like-for-like basis. Shops increased by 1.2 per cent. Compared with two years ago total sales were 23.1 per cent up whilst like-for-like sales grew by 20.5 per cent.
Online sales for the five weeks were 22.6 per cent up on last year with johnlewis.com accounting for 31.8 per cent of the total John Lewis business during this period. Click & Collect orders were 61.8 per cent up on last year.
Electricals and Home Technology sales were 10.7 per cent up on last year. Fashion, including Beauty, was 8.5 per cent up whilst Home increased by 2.0 per cent.
The five weeks saw a number of records fall. Black Friday (29 November) was the biggest ever day for online orders, the final pre-Christmas week (ending 21 December) broke the £160m barrier for the first time and the first day of Clearance in branches (27 December) was the biggest ever day for our shops and the business as a whole, taking £35.6m. |
Shoppers and retailers set for 'challenging' 2024, says BRC |
'Boxing Day sales: London helps UK high streets record footfall increase' |
For the definition of "catalyst watch". |
Why are you feeding 9 Oct data as current? |
That would be pure speculation on their part ;-) From what I've heard (from an employee) Primarni stores have been rammed for the past few weeks. |
Maybe they think the trading update on the 23rd january will be rubbish ? |
"‘Catalyst Watch’ is a short-term conviction indicator that JPM analysts can apply to a stock in their coverage into a specific event to articulate short-term positivity or caution based on near-term fundamentals."
Clear as mud! |
JPMorgan places AB Foods on 'negative catalyst watch'
...whatever the hell that means. |
xd thursday morning for the 33.1p final dividend and 12.7p 'special' dividend |
Shein holds talks with LSE to dangle prospect of London listing |
RBC raises AB Foods price target to 2,650 (2,600) pence - 'outperform' |
Chinese fast fashion giant Shein eyes £70bn US flotation |
Associated British Food price target upgrade underpinned by strong fundamentals, says investment bank
Liberum, the investment bank, has upgraded its price target for Associated British Foods PLC (LSE:ABF) from £24 to £28 per share, maintaining a 'buy' recommendation reflecting its confidence in ABF's strong trading performance and its effective capital return strategy.
Since upgrading to buy in June, Liberum said ABF has registered an 11% increase in earnings per share (EPS), with 8% coming from enhanced trading activities and 3% from strategic share buybacks.
It notes that ABF's commitment to shareholder value is further evidenced by its announcement of an additional £500 million share buyback program and a special dividend of 12.7p per share, amounting to approximately £100 million.
The bank also highlights that ABF's capital allocation framework is designed to facilitate cash returns to shareholders when leverage, including lease liabilities, is below one-times.
ABF's current leverage ratios are well within this limit. Liberum points out that the positive trading outlook for ABF is supported by various factors, including margin tailwinds, capital release in Primark, strong growth in the Sugar segment, and lower inflation across the group.
In the Sugar sector, Liberum forecasts a significantly brighter outlook for the fiscal year 2024, driven by high sugar prices, reduced energy costs, and a normal crop season, which are expected to boost profits at British Sugar and Azucarera.
Additionally, Vivergo is projected to reach a break-even point after substantial losses in the past two years, as per Liberum's analysis.
The £500 million buyback program and the special dividend, as Liberum observes, reflect management’s confidence in ABF's future free cash flow (FCF) generation. Liberum estimates that ABF has the capacity to sustain such levels of cash returns regularly.
In the Retail division, Liberum forecasts a return to approximately a 12% earnings before interest and taxes (EBIT) margin from 8% in the fiscal year 2023, aided by price increases, favourable foreign exchange impacts, and reductions in input and freight costs. Liberum also anticipates benefits from operating leverage and automation in future years.
Finally, the bank expects ABF to deliver a 5.9% free cash flow yield on its current market capitalisation in the fiscal year 2024, compared to 2.2% in the fiscal year 2023.
The company's shares are currently trading at a price-to-earnings (PE) multiple of 12.8 times and an enterprise value to earnings before interest, taxes, depreciation, and amortisation (EV/EBITDA) multiple of 7.0 times for the fiscal year 2024.
This valuation, according to Liberum, represents a circa 30% discount to the 10-year average multiples, indicating a significant upside potential for investors and justifying the increased price target and 'buy' stance.
proactiveinvestors.co.uk |
What price for selling off Primark alone, that's if a large specialist retailer or investment specialist fancied taking them over?
;-) |
Again, FWIW :-
Kepler Cheuvreux raises AB Foods price target to 2,150 (2,000) pence - 'hold' |
I wonder how long before these are 'amended'
UBS raises AB Foods price target to 2,200 (2,050) pence - 'neutral'
Deutsche Bank raises AB Foods target to 2,290 (2,260) pence - 'hold' |
Investors Chronicle:
Associated British Foods reveals surprise special dividend
More selling space looks set to boost Primark sales further in the year ahead
HOLD |
The parent firm of Primark has revealed a jump in profits and sales as shoppers continued to shop “enthusiastically” at the fashion chain despite price rises and budget pressures.
George Weston, the boss of Associated British Foods, told the PA news agency it has increased prices across a number of its autumn/winter clothing lines in recent months, but has cut the price of children’s clothes ahead of Christmas. |
It was less than a month ago JP Morgan put on negative watch. Well yet again rubbish out of analysts |
2+ year high @2276p |
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