Associated British Foods PLC (OTC:ASBFY) Faces Challenges Amidst Declining Primark Performance

• Citigroup maintains a "Sell" rating for ASBFY, lowering its price target following a profit warning.
• Primark's declining performance in continental Europe contrasts with its recovery in the UK, driven by strategic investments.
• AB Foods warns of a potential decline in annual profit due to weak demand in key markets for Primark and its food business.

Associated British Foods PLC (OTC:ASBFY) is a diversified international food, ingredients, and retail group. It owns Primark, a major retail chain known for its affordable fashion. The company operates in various sectors, including grocery, sugar, agriculture, and ingredients. Primark is a key part of its retail operations, competing with other fast-fashion retailers like H&M and Zara.

On January 12, 2026, Citigroup maintained a "Sell" rating for ASBFY, with the stock priced at $25.18. Citigroup also lowered its price target for AB Foods from 1,830 GBp to 1,710 GBp. This decision aligns with Panmure Liberum's recent downgrade from 'buy' to 'hold' due to a surprise profit warning from the company.

Panmure Liberum's downgrade highlights concerns over Primark's declining performance in continental Europe. Weak like-for-like sales in Europe raise questions about Primark's value amidst growing competition and cautious consumer behavior. This contrasts with Primark's UK operations, which have recovered due to strategic investments in pricing, marketing, and click-and-collect services.

AB Foods has issued a warning about a potential decline in its annual profit. This is due to weak demand for Primark in continental Europe and subdued demand in the United States for its food business. These challenges in key markets could impact the company's financial performance for the year.

Currently, ASBFY is priced at $25.20, with a minimal change of approximately 0.0003%. The stock reached a low of $24.74 and a high of $25.20 today. Over the past year, it has seen a high of $31.96 and a low of $22.69. The company's market capitalization is approximately $18.24 billion, with a trading volume of 56,766 shares on the OTC exchange.