Primark owner Associated British Foods releases interim results on Tuesday (23 April) having already predicted a year of ‘meaningful progress in both profitability and cash generation’ notes broker ShoreCap.
Since then, there have been quite mellow non-food sales {Primark] reported across the UK, with the wet weather having an adverse impact.
“Grocery is more settled with easing inflation, rising promotions and improving volumes,” adds the broker.
ShoreCap added it raised its 2024 forecasts in January and is looking for clean pretax profits of £1,787m and EPS of 174.5p against consensus of 180.6p.
“With a very strong balance sheet providing significant optionality, we find the current equity ratings undemanding,” the broker, which has a ‘buy’ rating on the shares.