Shares of Associated British Foods plc (LON:ABF) experienced a significant decline of 10.4% during mid-day trading on Thursday, following a downgrade from Deutsche Bank Aktiengesellschaft. The bank adjusted its price target for the stock from GBX 2,100 to GBX 1,925, maintaining a hold rating on the shares.
During the trading session, Associated British Foods reached a low of GBX 1,844 before settling at GBX 1,926.58. The stock’s trading volume was approximately 4,048,014 shares, marking a 53% decrease from its average daily volume of 8,639,694 shares. The previous closing price was GBX 2,151.
Analyst Ratings and Market Reactions
Other financial institutions have also reassessed their positions on Associated British Foods. Shore Capital recently downgraded the stock to a hold rating. On the same day, JPMorgan Chase & Co. reduced their price target from GBX 2,095 to GBX 1,940, issuing a neutral rating.
Meanwhile, Jefferies Financial Group reaffirmed an underperform rating with a price objective set at GBX 1,650. On November 10, Citigroup raised its price objective from GBX 1,830 to GBX 1,840, but assigned a sell rating to the stock. Currently, one analyst rates the stock as a buy, three have assigned a hold rating, and two have given it a sell rating.
According to data from MarketBeat.com, Associated British Foods has an average rating of “Reduce” and a consensus price target of GBX 1,931.
Company Performance Metrics
In its most recent earnings report released on November 4, 2023, Associated British Foods reported earnings per share (EPS) of GBX 174.90. The company boasts a return on equity of 13.07% and maintains a net margin of 7.25%. Analysts project that the company will post an EPS of approximately 188.10 for the current financial year.
Associated British Foods operates as a diversified international food, ingredients, and retail group, generating sales of £13.9 billion. It employs around 128,000 people and has a presence in 53 countries across Europe, Africa, the Americas, Asia, and Australia. The company’s segments include Grocery, Sugar, Agriculture, Ingredients, and Retail, with a commitment to providing safe, nutritious, and affordable products.
As of now, the company’s financial health indicators show a current ratio of 1.78, a quick ratio of 0.93, and a debt-to-equity ratio of 32.88. The stock has a market capitalization of £13.15 billion, a price-to-earnings ratio of 13.13, and a price-to-earnings-growth ratio of 1.51. The fifty-day simple moving average stands at GBX 2,132.80 while the two-hundred-day average is at GBX 2,147.53.
The recent downgrade by Deutsche Bank and subsequent analyst reactions reflect ongoing concerns about the stock’s performance and market sentiment towards Associated British Foods, which continues to navigate a challenging economic landscape.
