Associated British Foods (LON:ABF) Reaches New 12-Month Low on Analyst Downgrade

Associated British Foods plc (LON:ABF)’s share price reached a new 52-week low during trading on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from GBX 1,940 to GBX 1,780. JPMorgan Chase & Co. currently has a neutral rating on the stock. Associated British Foods traded as low as GBX 1,559 and last traded at GBX 1,854.50, with a volume of 22484834 shares traded. The stock had previously closed at GBX 1,834.50.

Several other equities research analysts have also commented on the stock. Citigroup dropped their price target on shares of Associated British Foods from GBX 1,710 to GBX 1,600 and set a “sell” rating on the stock in a research note on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft decreased their price objective on Associated British Foods from GBX 2,100 to GBX 1,925 and set a “hold” rating for the company in a report on Thursday, January 8th. Royal Bank Of Canada cut Associated British Foods to an “underperform” rating and lowered their target price for the company from GBX 2,050 to GBX 1,850 in a research report on Monday, April 13th. Jefferies Financial Group reiterated an “underperform” rating and set a GBX 1,650 price target on shares of Associated British Foods in a research report on Tuesday. Finally, Shore Capital Group reissued a “hold” rating on shares of Associated British Foods in a research note on Friday, April 17th. Three analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of GBX 1,761.

Associated British Foods News Roundup

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

• Positive Sentiment: ABF confirmed plans to demerge Primark from its food group — the strategic split could clarify valuations between the higher-growth retail arm and the lower-margin food operations, a common catalyst for rerating. Primark to split from food business
• Positive Sentiment: Some commentary and retail press flagged the demerger as a buying opportunity, which likely supported the intraday rally. Time to buy Associated British Foods?
• Neutral Sentiment: ABF reported quarterly results (GBX 62.70 EPS; revenue GBX 947bn) with modest margins and ROE ~9.3% — not clearly beat-or-miss, so the print is a mixed fundamental input while investors focus on demerger detail. Conference call and slide deck are available for further detail. Listen to Conference Call View Slide Deck
• Neutral Sentiment: Analyst previews and week-ahead coverage flagged the results and demerger as key near-term catalysts to watch (timing, structure, capital allocation). Q2 earnings preview
• Negative Sentiment: JPMorgan cut its price target from GBX 1,940 to GBX 1,780 and moved to a “neutral” rating, which can weigh on sentiment while investors assess the demerger impact. JPMorgan lowers target
• Negative Sentiment: Jefferies reaffirmed an “underperform” rating with a GBX 1,650 target — another bearish anchor that may pressure the stock until analysts update models for the split. Jefferies underperform LSE broker ratings
• Negative Sentiment: Market commentary noted ABF underperformed peers after the release, reflecting mixed reaction to results and broker moves. MarketWatch: ABF falls

Associated British Foods Stock Up 1.3%

The company has a market capitalization of £13.08 billion, a price-to-earnings ratio of 13.13, a P/E/G ratio of 1.51 and a beta of 0.84. The company has a debt-to-equity ratio of 33.33, a quick ratio of 0.93 and a current ratio of 1.54. The stock’s fifty day simple moving average is GBX 1,888.54 and its two-hundred day simple moving average is GBX 2,020.55.

Associated British Foods (LON:ABF) last released its quarterly earnings results on Tuesday, April 21st. The company reported GBX 62.70 earnings per share for the quarter. The business had revenue of GBX 947 billion during the quarter. Associated British Foods had a return on equity of 9.30% and a net margin of 5.27%. On average, sell-side analysts anticipate that Associated British Foods plc will post 188.0990415 EPS for the current year.

Associated British Foods Company Profile

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.