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Home / Trade Alert / Buy – Assoc. British Foods (ABF)

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Buy – Assoc. British Foods (ABF) - 19 July 2017

Trade Parameters

  • Opening Price: 2949p
  • Stop Loss: 2900p (49p/1.7% below)
  • Profit Limit: 3100p (151p/5.1% above)
  • Reward vs Risk: 3.1x
  • CFD Margin: 5%

Observations – For

Observations – Against

  • Hourly indicators overbought
  • No Point & Figure breakout
  • Daily chart shows recent channel breakdown

Analyst Comments

Bullish breakout and Bullish double bottom reversal pattern. Shares jumped after fashion division Primark upped guidance on 6 July.  The shares then sold off but have since begun to rebound. Grocery, sugar and agriculture divisions also doing well. Potential for reappraisal to take shares back to recent highs. Lower UK inflation yesterday reduces the squeeze on consumers, and cuts the chance of an August UK interest rate rise.

Consensus is majority bullish with potential to become even more so should Neutrals upgrade their stance on the share price breakout. Note over 80% of all broker targets suggesting upside from current levels and the average since 6 July results suggests a target of 3182p, beyond our trade objective and in-line with 12-month highs from last September.

Next Event: UK Retail Sales (tomorrow), Pre close Trading Update (11 Sept)

Latest Broker 12-Month Consensus:  68% Buy, 27% Hold, 5Sell (full breakdown on request)

Source: DowJones Newswires, Reuters News, Bloomberg  or Company Press releases

Broker Ratings & 12-Month Target Prices (Bloomberg)

3-week (hourly); MACD, Stochastics, Relative Strength Index, Momentum & Trend Strength

Share 1wk 1m 3m 6m 1yr 2yr 3yr 4yr 5yr
Perf % 3.7 -0.4 8.5 14.3 4.9 -7.5 3.8 56.6 129.7
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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

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