RBC Revises Estimates for Associated British Foods After Fiscal Q4 Trading Update

03:04 AM EDT, 09/16/2026 (MT Newswires) -- RBC Capital Markets adjusted its earnings forecasts for Associated British Foods (ABF.L) after the British food and retail group's fiscal fourth-quarter trading update on Sept. 10. "We think the market is disappointed by a lack of progress for Primark [like-for-like] trends, despite higher marketing investments, softer near-term Grocery and Sugar profits, and [concerns] about the future economics of a Primark home delivery offer," according to a Tuesday note focused on European retailers. For the 52 weeks ended Sept. 12, the group expects Primark's sales to rise 2%, with like-for-like sales down 2.6%. Additionally, Associated British Foods anticipates adjusted operating profit to be "broadly in line" with its prior guidance, while its adjusted EPS comes in slightly better than expected. The company previously forecasted these metrics to come in below the last year. Against this backdrop, the research firm trimmed its fiscal 2026 and 2027 pretax profit estimates by 1% to 3% on weaker grocery and sugar profit assumptions. Meanwhile, analysts raised their EPS forecasts by up to 2%, citing a lower expected tax rate and reduced share count. RBC rates the stock at underperform, with a price target of 18 pounds sterling.