Associated British Foods (LON:ABF) Stock Price Down 10.4% on Analyst Downgrade

Associated British Foods plc (LON:ABF)’s share price was down 10.4% during mid-day trading on Thursday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from GBX 2,100 to GBX 1,925. Deutsche Bank Aktiengesellschaft currently has a hold rating on the stock. Associated British Foods traded as low as GBX 1,844 and last traded at GBX 1,926.58. Approximately 486,813,688 shares were traded during mid-day trading, an increase of 363% from the average daily volume of 105,192,828 shares. The stock had previously closed at GBX 2,151.

Several other research analysts have also recently issued reports on ABF. Citigroup raised their target price on Associated British Foods from GBX 1,830 to GBX 1,840 and gave the stock a “sell” rating in a research report on Monday, November 10th. Jefferies Financial Group reiterated an “underperform” rating and issued a GBX 1,650 price objective on shares of Associated British Foods in a research note on Friday. JPMorgan Chase & Co. cut their target price on shares of Associated British Foods from GBX 2,095 to GBX 1,940 and set a “neutral” rating for the company in a research report on Friday. Finally, Shore Capital cut shares of Associated British Foods to a “hold” rating in a report on Friday. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of GBX 1,931.

Insider Buying and Selling

In other news, insider George G. Weston sold 43,660 shares of the stock in a transaction on Monday, November 17th. The shares were sold at an average price of GBX 2,103, for a total value of £918,169.80. Also, insider Eoin Tonge sold 34,818 shares of Associated British Foods stock in a transaction on Monday, November 17th. The shares were sold at an average price of GBX 2,103, for a total transaction of £732,222.54. Corporate insiders own 1.50% of the company’s stock.

Associated British Foods News Roundup

Here are the key news stories impacting Associated British Foods this week:

• Neutral Sentiment: CMA has accepted ABF and Hovis’s request to jump to Phase 2 of the merger investigation — this speeds the formal review process but confirms the takeover will face detailed competition scrutiny. CMA accepts joint ABF/Hovis request to fast-track merger investigation
• Neutral Sentiment: ABF and Hovis formally asked the UK regulator to fast?track the takeover review — demonstrates the parties want to shorten uncertainty, but it also signals a higher probability of a contested/complex review. ABF, Hovis ask UK regulator to fast-track takeover review
• Negative Sentiment: Primark issued a profit warning and reported weaker fashion & beauty holiday sales, driving the initial sell?off — Primark is a major earnings driver for ABF, so deterioration in its trading meaningfully lowers near?term profit visibility. Associated British Foods Shares Plunge as Primark Weakness Weighs on Outlook
• Negative Sentiment: Shares plunged roughly double?digits after the Primark profit warning; that sharp move has triggered analyst re?ratings and momentum selling. Associated British Foods (LON:ABF) Stock Price Down 10.4% – Here’s Why
• Negative Sentiment: Jefferies reaffirmed an “underperform” stance and set a GBX 1,650 target — a clear bearish signal from a major broker. Jefferies underperform / PT GBX 1,650
• Negative Sentiment: JPMorgan cut its price target from GBX 2,095 to GBX 1,940 and moved to “neutral”, and Deutsche Bank lowered its PT from GBX 2,100 to GBX 1,925 (now “hold”) — these cuts reduce analyst support and can pressure the stock further. JPMorgan & Deutsche price target cuts
• Negative Sentiment: Shore Capital downgraded ABF to “hold”, adding to the wave of less?constructive broker views. Shore Capital downgrade

Associated British Foods Trading Up 0.5%

The company has a debt-to-equity ratio of 32.88, a current ratio of 1.78 and a quick ratio of 0.93. The stock has a 50-day moving average price of GBX 2,132.80 and a two-hundred day moving average price of GBX 2,147.53. The stock has a market cap of £13.15 billion, a PE ratio of 13.13, a price-to-earnings-growth ratio of 1.51 and a beta of 1.24.

Associated British Foods (LON:ABF) last posted its earnings results on Tuesday, November 4th. The company reported GBX 174.90 EPS for the quarter. Associated British Foods had a return on equity of 13.07% and a net margin of 7.25%. Sell-side analysts forecast that Associated British Foods plc will post 188.0990415 earnings per share for the current fiscal year.

About Associated British Foods

Associated British Foods is a diversified international food, ingredients and retail group with sales of £13.9bn, 128,000 employees and operations in 53 countries across Europe, Africa, the Americas, Asia and Australia.

Our purpose is to provide safe, nutritious, affordable food, and clothing that is great value for money. With the breadth of our business, our brands and global reach, ABF aims to consistently deliver value to its stakeholders.

Our business is split into five segments: Grocery; Sugar; Agriculture; Ingredients; and Retail.