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(Sharecast News) - Deutsche Bank lifted its price target on Associated British Foods on Monday to 1,820p from 1,790p following the Primark owner's full-year results last week.
The bank said AB Foods reported FY26 largely in line with expectations and provided slightly more cautious guidance with regards Grocery EBIT for FY27.
"We update our model post the results and reflect the updated guidance," it said. "This sees a circa -1% profit before tax cut for FY27e and broadly unchanged for FY28e."
DB said it was lifting its price target given the Staples peer valuation.
"The AB Foods investment case remains uncertain at this stage with both upside risks (from Sugar EBIT) and downside (from Sugar and Primark LFL) in the short term," it said. "We will get more visibility on the Sugar profit outcome in January but the main issue is the Primark LFL. 1Q has started off badly given the weather, a better October has not fully recovered the weak start and we remain concerned over the health of the consumer in France and Germany."
The bank maintained its 'hold' rating albeit with more downside risk given the strong recent performance of the shares.
At 1518 GMT, the shares were down 0.2% at 1,986p.
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