RBC Capital downgraded AB Foods (LON: ABF) to underperform from sector perform and cut its price target to 1,850 pence from 2,050 pence, citing a more cautious view on the European retailing sector.
Analyst Richard Chamberlain’s downgrade adds to a growing body of negative analyst sentiment on the Primark owner, which has faced a wave of rating cuts and target reductions since the start of the year.
In January, Goldman Sachs downgraded AB Foods to sell from neutral with a 1,750 pence target, citing Primark’s declining sales growth and a margin reset at the group level.
Empfohlener Broker
Multi Asset Platform
Bernstein also cut the stock to market perform from outperform in the same month, slashing its target to 1,800 pence from 3,100 pence and pointing to deteriorating demand at Primark and continued weakness in sugar prices.
Citi and Morgan Stanley both trimmed their price targets in January as well, with Citi maintaining a sell rating at 1,710 pence and Morgan Stanley keeping an underweight at 1,650 pence.
The broader analyst community remains largely cautious on the stock. According to TradingView data, just two of 20 analysts covering AB Foods carry a buy rating, while 12 are at hold and six recommend selling.
The consensus price target of 1,945 pence implies only 3.4% upside from Monday’s close, suggesting modest headroom that leaves little margin for further deterioration in trading at Primark or the group’s food businesses.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading or investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
