Associated British Foods PLC's (LSE:ABF) new boardroom hires have removed a layer of uncertainty around two of the company’s most important roles, so says UBS and its London-based analyst team.
The appointments - adding Eoin Tonge as permanent Primark chief executive and Joana Edwards as group CFO - effective saw ABF move to firm up leadership at Primark and the wider group, the Swiss bank noted.
Analysts, who give stock a Neutral rating, with a 2,240p price target, reckon the decision to name Eoin Tonge as permanent Primark chief executive and Joana Edwards as group CFO brings “clarity and certainty” after both positions had been filled on an interim basis since March last year. Also, ABF has hired a new chief commercial officer at Primark too, hiring Filip Ekvall from September.
UBS said Tonge’s appointment reflects board confidence in the progress made at Primark during his interim stint, and points in particular to a better like-for-like sales trajectory in the UK.
The bank added that measures taken in the domestic market are now due to be implemented across Europe, while the new CCO role should help knit together product, retail, digital and customer functions under a more streamlined operating model.