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.
It’s 2018 and you still can’t order online from Primark, what’s that all about ????????♀️
— Sam (@SamLR0) May 15, 2018