RBC Downgrades ABF, Cuts Target 10%

RBC Capital Markets downgraded Associated British Foods to "underperform" and reduced price target to 1,850p from 2,050p, 3.6% below current price.
Adjusted EPS forecasts lowered to 157p for FY26 and 157.8p for FY27, with FY26‑28 profit before tax cut 4‑7% versus consensus.
Primark, contributing 49% of sales and 60% of EBIT, now expected 2.5% FY26 like‑for‑like sales decline amid Shein competition.
Grocery profit forecast cut to £456m FY26 with margins 10.8%; ingredients profit £242m and sugar profit £10m FY26.