Associated British Foods Share Discussion Threads

[philanderer] 10/1/2022 21:07

Patak's to curry favour with consumers in first TV advert in over a decade

[philanderer] 05/1/2022 19:04

Primark owner due a rerating, says Deutsche Bank

Deutsche Bank is expecting strong festive sales figures from Associated British Foods (ABF) and also believes the company’s flagship Primark brand is too heavily discounted.

Analyst Adam Cochrane rated the stock as a ‘buy’ ahead of a first-quarter trading update, adding that a ‘combination of supportive industry data’ shows there is ‘likely to be a strong sales performance over the Christmas trading period’.

‘We expect a stronger like-for-like sales performance for Primark than consensus currently expects given increased concerns over consumer confidence,’ he said.

‘We forecast like-for-like sales at -5% compared to the consensus view of -10% versus 2019. In our view, a more positive view of Primark like-for-like would see a material rerating of the stock.’

Additionally, Cochrane said ABF is trading on a circa 13.5x 2022 price-to-earnings ratio, compared with the clothing retail peer group on 16x. ‘If we use a sum-of-the-parts [valuation] it puts Primark on about 10x price-to-earnings, which is a 10% discount to Marks & Spencer,’ he added.

[philanderer] 27/12/2021 16:52

Shoppers largely steer clear of central London Boxing Day sales

[tomps2] 17/12/2021 10:30

ABF Richard Leonard's been buying.

PIWORLD interview at 49m33s and earlier mention too. Not much detail.

[philanderer] 15/12/2021 21:18

xd tomorrow morning for the 20.5p dividend and the 13.8p 'special'

[philanderer] 10/12/2021 13:55

10th dec UBS buy tp 2700p
10th dec Liberum buy tp 2600p
10th dec ShoreCap buy -

[philanderer] 10/12/2021 10:57

UBS CUTS AB FOODS PRICE TARGET TO 2,700 (2,900) PENCE - 'BUY'

[philanderer] 10/12/2021 10:31

About as good as could be expected. I'll continue to hold as ABF is now easily my smallest holding by value. Won't be adding though.


".... We are managing disruption in our supply chain by prioritising products most in demand with the support of our logistics providers for whom we are a very important customer. We have stock cover on the vast majority of lines for the important Christmas trading period. The incidence of COVID-19 cases is increasing and the public health measures taken to date in our markets are mainly restrictions in trading hours in the Netherlands, the requirement for vaccine passes in Germany and the closure of our five stores in Austria.

"Primark margin year to date has been ahead of expectations. Looking ahead we currently expect Primark sales to be significantly better than sales in the comparable period in the last financial year, from December 2020 to April 2021, when the estate was largely closed."

[bahiflyer] 10/12/2021 07:53

So acknowledged all the possible negatives that could impact and still expecting strong growth. Sounds good to me.

[philanderer] 09/12/2021 20:54

AGM tomorrow, may get a trading update.

[suetballs] 02/12/2021 11:29

Weston's flog Selfridges for £4bn.
At a nice profit I would expect.
Suet

[m_kerr] 22/11/2021 21:08

further info coming in that the unilever tea disposal was at 14.5 x ebitda. 2 bidders dropped out on ESG concerns (Unilever have tea plantations). bearing in mind unilever's tea division is effectively ex growth, what price for a growing business in twinings ovaltine? on that basis, you're looking at a price in excess of that valuation.

[philanderer] 22/11/2021 14:23

(Sharecast News)

- Footfall across UK retail destinations increased week-on-week in the seven days ended 20 November as the Christmas trading period began in earnest.
According to retail experts Springboard, footfall in UK retail destinations rose 4.1% last week, with increases being seen on six out of seven days, a marked improvement when measured against the previous week's 1.5% improvement.

[m_kerr] 19/11/2021 17:01

CVC private equity have bought most of Unilever's tea division (including PG tips) for €4.5bn, or 2.25 x it's sales of about €2bn. i bring this up because ABF's twinings brand is growing in this declining market, through premiumisation and innovation. twinings ovaltine is the gem in the portfolio and would command a premium valuation.

[philanderer] 19/11/2021 11:35

Germany new lockdown and Austria to make jabs mandatory from next year.

[tlobs2] 18/11/2021 16:23

m_kerr I would have thought that a share buy back would be highly beneficial and give the share price a much needed boost. As you say, they are hardly strapped for cash at the moment and it's not earning much in interest.

It worked well at NXT.

[philanderer] 18/11/2021 10:57

BERENBERG CUTS ASSOCIATED BRITISH FOODS PRICE TARGET TO 2,470 (2,650) PENCE - 'BUY'

[m_kerr] 16/11/2021 17:07

in this world of low interest rates, that £1.9bn net cash is shareholders capital earning 0.1%. with an A grade credit rating they can access debt on extremely favourable terms. overall ABF is well run, but they are missing a trick here. it's not short termism to take on a higher level of debt, if that capital is well invested. for new investors, the shares are attractive, but for existing shareholders, they've seen no capital growth in 8 years now. at least part of the reason for that is the over diversification. if they spun off or sold sugar, earnings would be far more predictable and would be rewarded with a significantly higher share price.

[mastey] 10/11/2021 20:55

Thanks Skinny

JP Morgan announcement today they are going overweight UK . They have cut price target of ABF to 40p below current but are overweight. Makes no sense. Is there a name of the analyst at JP M ? As I want to contact him

[skinny] 10/11/2021 10:28

DEUTSCHE BANK RAISES AB FOODS PRICE TARGET TO 2,300 (2,200) PENCE - 'HOLD'

JPMORGAN CUTS AB FOODS PRICE TARGET TO 2,100 (2,250) PENCE - 'OVERWEIGHT'

[suetballs] 10/11/2021 08:41

She'll rubbish mks next!!!!!!!!
Suet

[tlobs2] 10/11/2021 08:14

I couldn't believe it last night when moaning Mary Nightingale went on about the supply chain issues at Primark in the 6:30pm ITV news.

What the old trout forgot to mention was all the positives in yesterdays results. It looks like the media currently don't like to report any success stories !!