Associated British Foods (LON:ABF) Trading Down 11.1% on Analyst Downgrade

Shares of Associated British Foods plc (LON:ABF) were down 11.1% during 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 1,885.50 and last traded at GBX 1,912. Approximately 7,223,873 shares traded hands during trading, a decline of 22% from the average daily volume of 9,274,866 shares. The stock had previously closed at GBX 2,151.

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

Insiders Place Their Bets

In other Associated British Foods news, insider George G. Weston sold 43,660 shares of the 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 transaction 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.

Trending Headlines about Associated British Foods

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 quick ratio of 0.93 and a current ratio of 1.78. 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. The company’s 50-day moving average price is GBX 2,132.80 and its 200 day moving average price is GBX 2,147.53.

Associated British Foods (LON:ABF) last released its quarterly 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%. On average, sell-side 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.