Analysts at UBS expect Associated British Foods (LON:ABF) to report a small drop in quarterly sales when it updates investors on its third-quarter performance next week, Proactive Investors reports. The Primark owner’s results are due out on Thursday, July 5.
AB Foods’ share price has climbed marginally higher in today’s session, having added 0.15 percent to 2,744.00p as of 14:45 BST. The stock is underperforming the broader UK market with the benchmark FTSE 100 index currently standing 0.78 percent higher at 7,675.12 points. The group’s shares have added just under six percent to their value over the past year, as compared with about a 4.3-percent gain in the Footsie.
AB Foods to post results
Proactive Investors reports that UBS expects AB Foods to report that its like-for-like sales have dipped in the third quarter of its financial year, albeit against some strong comparatives while the recent good weather could see that figure improve. The newswire notes that investors will also be eyeing comments about Primark’s roll-out in the US where the chain currently has eight stores.
Earlier this month, RBC Capital Markets flagged an improvement in Primark’s like-for-like sales in the second half of this year and FY19 thanks to an ongoing strong product offering and less competition from the likes of New Look, Pep & Co and Lefties.
Analysts ratings update
The 16 analysts offering 12-month price targets for AB Foods for the Financial Times have a median target of 3,175.00p on the shares, with a high estimate of 3,600.00p and a low estimate of 2,600.00p. As of June 22, the consensus forecast amongst 21 polled investment analysts covering the blue-chip group has it that the company will outperform the market.