CLIVE BLACK | SHORE CAPITAL
ABF has revealed more divisions reporting either slowing sales growth or margin pressure than we had anticipated. Such challenges are likely, to our minds, to compress the upward momentum of the shares in the near term. We reiterate our ‘hold’ recommendation.
GRAHAM JONES | PANMURE
The shares have come off their highs, but this reflects concerns for the sector in the face of spiralling cost inflation and a weak consumer environment in many developed markets. The shares, in our view, have drifted into more attractive territory trading. ‘Hold’.
MAUREEN HINTON | VERDICT
Though Primark has opened more stores in the UK, and will continue to do so, the steep growth curves will come from new markets where its proposition has greater impact. Primark needs to gain scale and critical mass in these continental markets in order to gain more volume advantage.