Update shared on16 Sep 2025
Fair value Decreased 0.79%The slight decrease in Associated British Foods' consensus price target to £22.07 reflects divergent analyst sentiment driven by uncertainty over UK consumer spending, macroeconomic conditions, and varying expectations for margin and revenue stability.
Analyst Commentary
- Bearish analysts have taken a more cautious view on the UK consumer, leading to a downgrade and lower price target.
- Bullish analysts highlight improved outlook and relative strength, prompting an upgrade to Buy and a higher price target.
- Divergence in sentiment reflects uncertainty regarding UK macroeconomic environment and its impact on consumer spending.
- Valuation considerations are driving adjustments, with some analysts believing risks are now better priced in.
- Recent changes incorporate varying expectations for margin performance and revenue stability within core business segments.
What's in the News
- Opened 15 new stores across the US, Spain, Portugal, France, Italy, Romania, and the UK; completed 22 store refits.
- Closed 1 store and right-sized 1 store in the Netherlands.
- Progressed preparations for first Middle East store openings under franchise, starting with Kuwait and Dubai.
Valuation Changes
Summary of Valuation Changes for Associated British Foods
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £22.24 to £22.07.
- The Consensus Revenue Growth forecasts for Associated British Foods has significantly fallen from 3.0% per annum to 2.6% per annum.
- The Future P/E for Associated British Foods has risen from 11.58x to 12.70x.
Disclaimer
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