Associated British Foods Share Discussion Threads

[philanderer] 22/2/2019 12:34

Trading update monday.

This weather is a bit special :-)

[tlobs2] 22/2/2019 12:31

In other news ………;..

Clothing chain Primark expected to report resilient sales, bucking the trend of High Street gloom
Clothing chain Primark is expected to report resilient sales figures later this month, bucking the trend of high street gloom. Its next trading statement may even outshine its Christmas performance, according to City analysts.

Brokers at Jefferies said Primark could increase profits in the six months to March by as much as 25 per cent to £425 million. It said the chain could also have been lifted by better weather and solid performances in the US, Italy, France and Poland.

The broker added that Primark could also benefit from a 'rational completion of Brexit' and a subsequent recovery in sterling that would make imports relatively cheaper.

[queen gibbs] 22/2/2019 09:21

Morning EI
My caution would be similar to most I guess - everything rides on when you invest/invested, my focus/comments have been based on the value which was North of £33.30+ just 15/16 months ago
If you divide the business into two Primark then the rest = the rest is fairly dreadful with Primark being the driving force for the past ten years or so, this is the reason ABF have never split the business as without Primark there is no viable business
The issue that I believe is that they have with too many eggs in one basket, with that side of the business having too consistently over perform & it isn't
Some of this is out of their hands with Brexit, the decline of the High Street etc, factors like Ethics & sustanability will always make volume retailers a target for bad press & in house decision making
In house decision making -
Some great some questionable
France = incredible success
Germany = dreadful - believed their own hype & opened too many huge stores too close to each other & the Germans have a huge issue with Primarks Ethics
Poland = not opened yet .....even though a recent report shows strong trading there! will be a huge success in my opinion - new market = massive opportunity
USA = PR stunt, too go where others have failed! Huge loss maker, cutting back plans & footage to suit the reality of the US customer, may work long term however at a cost, not sure income will outweigh investment
UK - there will be massive coverage of landmark stores this year the Bluewater & Birmingham will be surrounded with huge hype however the fact is that Like for Like sales have been in decline for 12 months
Spain = great success with another Flagship in Barcelona on the way
Online - 2020 click & collect (from stores only) 20 years behind the times & will cost a fortune to implement something that customers don't want
Summary = I would be cautious as the drop over the recent time period has been dramatic & out of line with FSTE & I'm not sure if/when the price gets back to the £33/£34 mark & if/when it does it will be down to 'the rest' performing & not Primarks growth
'You pay your money & takes your chance!'

[tlobs2] 22/2/2019 09:09

In the link that phil posted (1870) the finance director sounds very positive.

[essentialinvestor] 21/2/2019 12:31

QG, you still cautious here?

Last update read quite well to me.

[tlobs2] 19/2/2019 07:35

An excellent article. Thanks Phil. Bring on the next trading update :-)

[philanderer] 18/2/2019 18:38

QG , I missed that 😊


I see they have plans though ;-)

[tlobs2] 18/2/2019 11:08

I remain optimistic on this one, based on the amount of products that my daughters and their friends buy from the local Primark !!

:-)

[queen gibbs] 17/2/2019 09:28

Phil - solid performance in Poland? they don't trade there yet!

[philanderer] 17/2/2019 09:15

'Clothing chain Primark expected to report resilient sales figures later this month, bucking trend of High Street gloom'

[philanderer] 01/2/2019 23:25

'Opinion: Canada needs a Primark store, or three'

[philanderer] 25/1/2019 20:27

:-O


A human bone was found in a pair of Primark socks, and police are investigating In terms of explanation, Primark suggest someone placed it there for 'unknown reasons'.

Read more at:

[philanderer] 25/1/2019 10:31

25th jan Goldmans neutral tp 2600p up from 2500p

[philanderer] 24/1/2019 10:24

24th jan Kepler buy tp 2800p

reiterates

[philanderer] 22/1/2019 10:17

22nd jan RBC outperform tp 2900p

[tlobs2] 19/1/2019 10:49

A very good week with an excellent trading statement. Onwards and upwards.

[philanderer] 18/1/2019 14:03

18 January 2019 | 12:40pm

StockMarketWire.com - Societe Generale today reaffirms its hold investment rating on Associated British Foods PLC [LON:ABF] and cut its price target to 2332p (from 2378p).

[philanderer] 18/1/2019 13:36

'Primark won't easily surrender its position as the face of fast fashion with market share growing'


Fast fashion's poster child has survived a bout of bad publicity courtesy of MPs on the Environmental Audit Committee to post a solid set of numbers. Campaigners will continue to focus their ire on it – even though there are worse offenders out there

[philanderer] 18/1/2019 11:43

Associated British Foods fears overdone, says Jefferies

Signs point to investor fears of a rebasing of earnings at Associated British Foods (ABF), warns Jefferies.

Analyst James Grzinic retained his ‘buy’ recommendation and target price of £28 on the shares, which jumped 7% to £23.30 yesterday.

‘A price/earnings at the low end of history, trough 2018/19 sugar earnings, and peak net cash balances suggest investors are fearing an earnings rebasing to come at ABF,’ he said.

But he argued yesterday’s update showed those fears were ‘overdone’ and ‘encouragingly, Primark continues to add ample market share in the UK, and to trade strongly in markets which represent the core of its growth opportunity over the next five years’

[philanderer] 18/1/2019 10:03

18th jan JP Morgan overweight -

reiteration

[skinny] 18/1/2019 09:24

Barclays Capital Overweight 2334.00 3280.00 Reiterates

[philanderer] 18/1/2019 00:24

Animal print skirts and faux sheepskin coats help Primark shine in the High Street's Christmas gloom

[philanderer] 17/1/2019 17:27

Stonking day :-D

[philanderer] 17/1/2019 14:30

Primark sales soar as it plans new Mega-Store in UK

[philanderer] 17/1/2019 13:43

JP Morgan and Goldman comment here...