12:45 AM EST, 11/04/2026 (MT Newswires) -- Deutsche Numis Research believes Associated British Foods' (ABF.L) "softer" fiscal 2027 guidance for its grocery business will "likely" lead to a low single-digit consensus downgrade, even after a slight beat in its 2026 results. "As a reminder, FY27 guidance comprises Primark sales growth of c.+4% from new space and an EBIT margin of c.10% before c.30bps of demerger costs (cons. 9.9%), Ingredients EBIT broadly in line with FY26 (cons. flat), and a Sugar loss of GBP70m-GBP170m (cons. GBP120m). Higher sugar prices should, however, be supportive for FY28 and beyond. The only notable change versus the September pre-close was in Grocery, where management softened its outlook from adjusted EBIT being 'slightly ahead' to broadly in line with FY26, suggesting a more cautious view on the balance between underlying growth and cost pressures/Hovis integration effects," analysts said Tuesday. The research firm noted that the London-listed food processing company's group EBIT reached 1.51 billion pounds sterling, compared with the consensus estimate of 1.49 billion pounds, while EPS came in at 1% ahead of expectations at 1.56 pounds. Associated British Foods' group revenue was 19.58 billion pounds, up 1% at actual currency and down 1% at constant currency. Against this backdrop, Deutsche Numis said it sees little room for multiple growth until earnings clearly pick up. The stock is rated hold, with a price target of 17.90 pounds at the research firm.

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