This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Berenberg (4 Oct) says shares -20% no concern; upgrades shares to Buy, ups target to 3000p. CFO says (10 Sept) will cut Sugar costs with sweetener prices pressured by end of EU production quotas. Shore Capital (10 Sept) says strong Primark and Food eclipsed Sugar woes. Hargreaves (10 Sept) says sales fall at Primark not a big concern.
Risks to AB Foods shares include poor results on 6 November, negative UK retail sales data, a sustained market rally that favours risk assets rather than defensive/non-cyclicals and, of course, broker downgrades.
Brokers/analysts are bullish on the shares with only 5% suggesting Sell. This is supported by 81% of broker price targets suggesting upside from current levels, to a consensus target of 2768p, well above our short-term target of revisiting August highs of 2485p.
Next Event: Q3 Results, 6 November
Latest Broker 12-Month Consensus: 62% Buy, 22% Hold, 16% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr | |
| Perf % | 0.5 | 1.4 | -7.6 | -7.7 | -29.6 | -8.1 | -32.0 | -10.2 | 21.6 |
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Prepared by Michael van Dulken, Head of Research