Bernstein Tweaks Associated British Foods Estimates After 'Soft' Fiscal Q3 Results

Bernstein revised its estimates for Associated British Foods (ABF.L) as part of a model update to incorporate the group's "soft" fiscal third-quarter results and company guidance. "Our numbers are largely unchanged apart from downwards revisions for retail and sugar. We soften our retail sales growth estimates on the back of weakness in Europe, which has driven soft performance, and we expect this to continue into the next quarter as the consumer remains challenged. This results in our rental sales estimate coming down c. -1% for 2026," according to a Thursday note. "We also change our sugar profitability expectations as management downgrade guidance to a -GBP20m to -GBP60m loss. We sit in the middle at c. -GBP40m." Consequently, the research firm's EPS forecast for fiscal 2026 fell to 1.48 pounds sterling from 1.51 pounds, against the consensus of 1.56 pounds. For fiscal 2027, the EPS projection also declined to 1.43 pounds from 1.54 pounds. "We are more cautious on profitability (-55bps) at Group level but expect downwards revisions and therefore a narrowing of this delta," Bernstein wrote. The stock is rated market-perform, with a price target of 18 pounds. Copyright ©.