05:25 AM EDT, 09/08/2026 (MT Newswires) -- Deutsche Bank Research expects Associated British Foods (ABF.L) to report a year-over-year rise in sales for fiscal 2026 in its trading update on Thursday, but noted that the British food and retail group's sugar division continues to weigh on its results. "AB Foods has lowered its guidance with this trading update for the last two years, largely on Sugar, but also with cuts to Primark LFL sales expectation and margin outlook. Given the scale of the Sugar profit cuts, we expect limited further negative news on this front given more supportive sugar pricing but we see some risks for Primark margin recovery given the increased focus on pricing as part of the 'Iconic Value' ranges saw hundreds of prices being cut by up to 30%," the research firm said in its General Retail & Luxury Weekly industry update. Analysts forecast a 0.5% rise in sales to 19.56 billion pounds sterling, with adjusted EBIT of 1.54 billion pounds. Sales in its sugar division are anticipated to fall 6%, while the grocery and retail segments are projected to see an increase in sales. The stock is rated hold, with a price target of 18.50 pounds, at Deutsche Bank.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.