Associated British Foods Share Discussion Threads

[gateside] 27/6/2016 20:09

But surely people will still need to buy food and there will be a greater demand for cheap but fashionable clothes?Surprised ABF has been hit so hard.

[philanderer] 27/6/2016 14:07

off a cliff..

Paul Markham, who manages a £4bn global equities fund at Newton Investment Management, says: “The market has already decided to make for the door in terms of the sectors that will be hurt.’’

He adds: “The problem for the FTSE 250 is the potential for recession that will hit the more consumer discretionary sectors.

[philanderer] 27/6/2016 13:03

Chart support looks to have gone, but very tempted to add here.

[philanderer] 24/6/2016 09:53

Well said :-D

[tlobs2] 23/6/2016 21:30

A bit of cheap "what if" reporting from Morgan Stanley.

And not for the first time :-(

I look forward to ABF ramming it right back up their respective @rses in the coming weeks ......

[philanderer] 23/6/2016 20:32

Brooklyn goes Euro: King’s Plaza redo features Primark and Zara

[philanderer] 22/6/2016 23:51

MARKET REPORT: Primark tipped for its first sales fall in 15 years with owner Associated British Foods the day's worst performing blue-chip stock

Read more:

[philanderer] 22/6/2016 11:56

Ah .. got it. Downgrade by Morgan Stanley, who obviously were not down that pub last week or read the Questor 'buy' tip a couple of days ago. ;-)

(ShareCast News) - Associated British Foods was under the cosh on Wednesday after Morgan Stanley cut its stance on the stock to 'equalweight' from 'overweight' and slashed the price target to 2,650p from 3,500p as it took a fresh look at Primark.

The bank said that while Primark remains a great business with attractive long-term growth prospects, its like-for-like sales have slowed to zero over the last 18 months or so.

"With Kantar data suggesting that trading momentum in the UK has weakened further recently, we now expect -1% LfL for FY H2.This means we now expect LFL to be negative for the year as a whole- something that we have not seen from Primark in more than 15 years."

MS said that it was not sure why LFL growth was slowing so much but is concerned it could be partly due to structural factors.

It now values Primark at £15.1bn versus £22.2bn previously, which leads to the downgrade of the stock.

Morgan Stanley said it remains a big fan of Primark and its discounter business model and customer proposition, but now sees it as 10-12% per annum growth business rather than one capable of delivering 15-20% growth.

It reckons Primark has limited further space growth opportunity in the UK and Ireland but is optimistic about its prospects in the US, although it does not expect it to become a material driver of space growth before 2019.

At 0924 BST, AB Foods shares were down 3% to 2,815p.

[tlobs2] 20/6/2016 10:00

I know exactly what you are saying Gateside.

DYOR :-)

[gateside] 19/6/2016 21:16

Don't base my investment decisions on rumours in a pub on a Friday night!

[philanderer] 17/6/2016 09:48

New Primark in Stafford will bring 150 jobs

[philanderer] 13/6/2016 13:43

Shares of Associated British Foods are worth buying, said Questor in the Sunday Telegraph. Recently reliant on growth from its Primark clothing chain, AB Foods now looks likely to gain from the rally in US sugar prices after half a decade's decline. The group's sugar arm, which saw profits rot from above £430m to £43m in the previous two years, should benefit from bad weather hitting Brazil's harvest and cost cutting, though EU prices have yet to fully mirror the bounce in the US.

Meanwhile, though Primark endured a slower half-year as it launches in the USA, the grocery brands unit, which includes Ryvita, Jordans, Blue Dragon and Patak's, has been solid and improved profitability in the first half too. The conglomerate nature of the business meant these solid performances and even better from the ingredients business made up for a more difficult time for the agriculture arm. ABF is a powerful cash generator and healthy dividend payer. The shares are down by more than 10% this year but still are not lowly rated on a price-earnings basis.

[philanderer] 19/5/2016 14:36

12 month low today ... -15% in the last four weeks

2770p next chart support then down to 2480p

[philanderer] 18/5/2016 21:27

Off again tomorrow , looking like a US interest rate hike in june.

Online retail taking a slug of market share. Borrowing costs now increasing.

[gateside] 18/5/2016 21:00

What's happening to the share price here? Not good.

[philanderer] 18/5/2016 17:18

Primark reveals new Dublin head office

[philanderer] 17/5/2016 17:03

from yesterday...

Zacks Investment Research upgraded shares of Associated British Foods plc (OTCMKTS:ASBFY) from a hold rating to a buy rating in a research note issued to investors on Monday. They currently have $49.00 price objective on the stock.