No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shore Capital downgraded its stance on Associated British Foods on Friday to 'hold' from 'buy' after the Primark owner's profit warning a day earlier.
AB Foods cut its profit outlook on Thursday due to weaker performances at its Primark retail chain and US foods operations.
Shore Capital said Primark has faced challenging market conditions across Continental Europe, whilst also reporting some difficult trading patterns in US Grocery & Ingredients too.
"Sugar expectations are unchanged. Adjusted EBIT and EPS are guided below the FY25 out-turn, making for a notable downgrade to our estimates," the broker said.
"We cut our FY26F EPS by circa 11% to 161.7p. Following this disappointing update, we believe it is sensible to temper our positive stance on ABF stock to a hold position, noting we see a lot to like about the ABF business, but also need to understand and see how trading ultimately settles."
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.