Associated British Foods (LON:ABF) Shares Down 11.4% Following Analyst Downgrade

Associated British Foods plc (LON:ABF) shares traded down 11.4% on Thursday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from GBX 2,100 to GBX 1,925. Deutsche Bank Aktiengesellschaft currently has a hold rating on the stock. Associated British Foods traded as low as GBX 1,891 and last traded at GBX 1,904.96. 6,923,978 shares were traded during trading, a decline of 25% from the average session volume of 9,214,887 shares. The stock had previously closed at GBX 2,151.

A number of other research analysts have also weighed in on ABF. Shore Capital lowered Associated British Foods to a “hold” rating in a research report on Friday. JPMorgan Chase & Co. dropped their price target on Associated British Foods from GBX 2,095 to GBX 1,940 and set a “neutral” rating for the company in a research note on Friday. Citigroup lifted their price objective on Associated British Foods from GBX 1,830 to GBX 1,840 and gave the stock a “sell” rating in a research note on Monday, November 10th. Finally, Jefferies Financial Group reiterated an “underperform” rating and set a GBX 1,650 target price on shares of Associated British Foods in a research report on Friday. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of GBX 1,931.

Insider Activity at Associated British Foods

In other news, insider Eoin Tonge sold 34,818 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of GBX 2,103, for a total transaction of £732,222.54. Also, insider George G. Weston sold 43,660 shares of the stock in a transaction on Monday, November 17th. The shares were sold at an average price of GBX 2,103, for a total value of £918,169.80. Insiders own 1.50% of the company’s stock.

Key Stories Impacting Associated British Foods

Here are the key news stories impacting Associated British Foods this week:

• Neutral Sentiment: CMA has accepted ABF and Hovis’s request to jump to Phase 2 of the merger investigation — this speeds the formal review process but confirms the takeover will face detailed competition scrutiny. CMA accepts joint ABF/Hovis request to fast-track merger investigation
• Neutral Sentiment: ABF and Hovis formally asked the UK regulator to fast‑track the takeover review — demonstrates the parties want to shorten uncertainty, but it also signals a higher probability of a contested/complex review. ABF, Hovis ask UK regulator to fast-track takeover review
• Negative Sentiment: Primark issued a profit warning and reported weaker fashion & beauty holiday sales, driving the initial sell‑off — Primark is a major earnings driver for ABF, so deterioration in its trading meaningfully lowers near‑term profit visibility. Associated British Foods Shares Plunge as Primark Weakness Weighs on Outlook
• Negative Sentiment: Shares plunged roughly double‑digits after the Primark profit warning; that sharp move has triggered analyst re‑ratings and momentum selling. Associated British Foods (LON:ABF) Stock Price Down 10.4% – Here’s Why
• Negative Sentiment: Jefferies reaffirmed an “underperform” stance and set a GBX 1,650 target — a clear bearish signal from a major broker. Jefferies underperform / PT GBX 1,650
• Negative Sentiment: JPMorgan cut its price target from GBX 2,095 to GBX 1,940 and moved to “neutral”, and Deutsche Bank lowered its PT from GBX 2,100 to GBX 1,925 (now “hold”) — these cuts reduce analyst support and can pressure the stock further. JPMorgan & Deutsche price target cuts
• Negative Sentiment: Shore Capital downgraded ABF to “hold”, adding to the wave of less‑constructive broker views. Shore Capital downgrade

Associated British Foods Stock Up 0.5%

The company has a debt-to-equity ratio of 32.88, a quick ratio of 0.93 and a current ratio of 1.78. The company’s fifty day moving average price is GBX 2,132.80 and its 200-day moving average price is GBX 2,147.53. The stock has a market cap of £13.15 billion, a P/E ratio of 13.13, a price-to-earnings-growth ratio of 1.51 and a beta of 1.24.

Associated British Foods (LON:ABF) last posted its quarterly earnings data on Tuesday, November 4th. The company reported GBX 174.90 earnings per share for the quarter. Associated British Foods had a net margin of 7.25% and a return on equity of 13.07%. Equities analysts forecast that Associated British Foods plc will post 188.0990415 EPS for the current year.

Associated British Foods Company Profile

Associated British Foods is a diversified international food, ingredients and retail group with sales of £13.9bn, 128,000 employees and operations in 53 countries across Europe, Africa, the Americas, Asia and Australia.

Our purpose is to provide safe, nutritious, affordable food, and clothing that is great value for money. With the breadth of our business, our brands and global reach, ABF aims to consistently deliver value to its stakeholders.

Our business is split into five segments: Grocery; Sugar; Agriculture; Ingredients; and Retail.