Associated British Foods (LON:ABF) Trading Down 10.4% After Analyst Downgrade

Shares of Associated British Foods plc (LON:ABF) were down 10.4% 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 4,048,014 shares were traded during mid-day trading, a decline of 53% from the average daily volume of 8,639,694 shares. The stock had previously closed at GBX 2,151.

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

Insider Buying and Selling

In other news, insider Eoin Tonge sold 34,818 shares of the company’s stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of GBX 2,103, for a total value of £732,222.54. Also, insider George G. Weston sold 43,660 shares of the business’s 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. 1.50% of the stock is owned by insiders.

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 Price Performance

The stock has a market capitalization of £13.15 billion, a price-to-earnings ratio of 13.13, a P/E/G ratio of 1.51 and a beta of 1.24. The company has a fifty day simple moving average of GBX 2,132.80 and a 200 day simple moving average of GBX 2,147.53. The company has a debt-to-equity ratio of 32.88, a quick ratio of 0.93 and a current ratio of 1.78.

Associated British Foods (LON:ABF) last announced 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%. Equities research analysts forecast that Associated British Foods plc will post 188.0990415 EPS 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.