viewAssociated British Foods PLC

Primark owner AB Foods downgraded by Goldman Sachs

The US investment bank has abandoned its bullish position on Primark owner after factoring in the recent exchange rate fluctuation into its valuation

Primark shop
GS has lopped a quid off the price target, which now stands at 3,000p

Primark owner Associated British Foods PLC (LON:ABF) has been downgraded by Goldman Sachs after the US investment bank updated its forecast assumptions for fiscal 2019.

Factoring in the strength of the dollar against sterling since the end of March, Goldman has cut £26mln off its earnings before interest and tax (Ebit) forecast, which now stands at £930mln, up 13% year-on-year.

READ: AB Foods blames weather for drop in like-for-like sales at Primark in the first half

The earnings per share forecast has been trimmed by 2% to 146.3p, up 10% year-on-year.

The changes fed through to a cut in its sum of the parts-based price target to 3,000p from 3,100p and a downgrade to ‘neutral’ on valuation grounds.

AB Foods currently trades at 2,721p, down 1.1% on the day.

Quick facts: Associated British Foods PLC

Price: 2628 GBX

Market: LSE
Market Cap: £20.81 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Full interview: Positive update on Cascadura for Touchstone Exploration

Touchstone Exploration (LON:TXP)says that the first stage of testing at the Cascadura-1ST1 well, at the Ortoire exploration project in Trinidad, has been suspended so the company can source alternative equipment capable of handling higher volumes of both natural gas and liquids. CEO Paul Baay...

4 hours, 40 minutes ago


Trading Update

4 days, 13 hours ago

Director/PDMR Shareholding

5 days, 3 hours ago

Director Declaration

2 weeks, 6 days ago

Result of AGM

on 6/12/19

2 min read