This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Citi (6 Nov) says AB Food’s FY results were robust and Primark guidance will reassure. RBC (6 Nov) says AB Foods’ Primark still undervalued compared to peers. Liberum (6 Nov) says AB Foods set for growth despite mixed FY 2019 outlook. Hargreaves Lansdown (6 Nov) says Primark results sweeten the pill for AB Foods.
Risks to AB Foods shares include negative UK retail sales data, poor updates from Retail peers, a sustained market rally that favours risk assets rather than defensive/non-cyclicals and, of course, broker downgrades.
Brokers/analysts are bullish on the shares with only 5% suggesting Sell. This is supported by 69% of broker price targets suggesting upside from current levels, to a consensus target of 2769p, just below our short-term target of revisiting June highs of 2845p.
Next Event: Trading Update, Mid-Jan
Latest Broker 12-Month Consensus: 76% Buy, 19% Hold, 5% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr | |
| Perf % | 6.1 | 10.5 | 2.6 | -6.5 | -24.3 | 2.4 | -26.2 | -14.9 | 11.5 |
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.
Prepared by Michael van Dulken, Head of Research