Associated British Foods PLC
ABF: XLON (GBR)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| GBX 4,986.00 | Mhny | Pfjmsljb |
Associated British Foods Earnings: Stock Up Amid Strong Revenue Growth and Optimistic Profit Outlook
We increase our fair value estimate for no-moat Associated British Foods, or ABF, by 5% to GBX 2,370 following a solid set of fiscal 2023 results and an increase in our 2024 margin assumptions to 8.8% from 8.2% previously. This is supported by an optimistic outlook from management, guiding for a substantial improvement in profitability for both the sugar and the retail businesses. The share price was up around 7% in intraday trading, leaving shares relatively fairly valued.