Associated British Foods PLC
ABF: XLON (GBR)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| GBX 9,335.00 | Ffxt | Wclgvcrb |
ABF's Strategy for Price Leadership With Primark is Bearing Fruit Amidst Inflationary Pressure
Business Strategy and Outlook
Although we think that Associated British Foods', or ABF's, mass-apparel retail division– Primark–should deliver consistent growth through its expansion over the short term, supported by a reliable performance from the remaining largely commodified food divisions, we believe that the company’s potential will be limited over the long term by intense competition and a lack of differentiation, leading to our no-moat rating.