Associated British Foods

Model upgrades – next phase of equity story

  • Sectors : Foods
  • Companies : Associated British Foods

Ratings and price correct at time of issue.

  • Associated British Foods

    Closing Price: 2656p

  • RATING 05/07/11

  • PREVIOUS RATING 03/11/10



We believe that Associated British Foods (ABF) has reached an inflection point in its equity story, having established a sustainable margin corridor for Primark, which paves the way for growth-based investments. A proactive approach to brand and marketing investments at Primark, coupled with its ongoing store rollout, forms a potent combination to drive future returns. We upgrade our FY24 and FY25 adjusted EPS by 7.5% and 8.4% respectively. We retain our ‘Outperform’ rating and increase our price target to £31.2, implying c.17% upside. We believe the current valuation fails to reflect the material advancements made across the business.

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May 1 2024, 07:30 IST/BST