Should I buy Associated British Foods stock in 2025?

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At HelloSafe, our specialist has been tracking the performance of Associated British Foods for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Associated British Foods.

Associated British Foods

Associated British Foods stock price

The price of Associated British Foods stock is rising this week. Currently trading at 2,071 pence, the share has gained 13 pence over the last 24 hours (+0.63%) and is up 1.42% for the week. The market capitalisation stands at £14.89 billion, with an average daily volume of 1.12 million shares over the past three months. The stock features a price-to-earnings (P/E) ratio of 11.70, a dividend yield of 3.06%, and a beta of 1.20. With steady performance and moderate volatility, Associated British Foods continues to offer solid potential for diversified UK investors.

Our full analysis of the Associated British Foods stock

We have reviewed Associated British Foods’s latest financial results and the stock’s performance over the past three years, integrating comprehensive financial, technical, and market analyses with competitor benchmarks via our proprietary algorithms. This multi-angle approach provides a thorough perspective for investors. So, why might Associated British Foods stock once again become a strategic entry point into the consumer defensive sector in 2025?

Recent performance and market context

After encountering a sharp correction over the past year, Associated British Foods has demonstrated a promising recovery in recent weeks, with the share price moving up by 1.42% this week and closing at 2,071 pence. Despite a broader market context weighed down by macroeconomic headwinds across Europe, the company has managed to stabilise its market capitalisation at £14.89 billion, reflecting renewed investor confidence. Recent corporate actions—including continued share buybacks and resilient grocery segment performance—have helped drive sentiment upward. The group’s flagship brand, Primark, has sustained steady footfall and robust international growth, particularly across Europe and the US, while operational stability in its food businesses further supports the bullish context. These strengths are particularly advantageous given inflationary trends that favour defensive consumer staples.

Technical analysis

Technically, Associated British Foods is showing signs that it may be entering a constructive upward phase. The 20-day and 100-day simple moving averages are sending buy signals, supporting the view of a potential bullish reversal. The 200-day moving average remains above the current price, historically a precursor to short-term rallies in mean-reverting stocks. The 14-day RSI of 50.16 signals neutrality, leaving room for further upside without overbought risk. The stochastic oscillator also points to underlying buying momentum at current levels, while technical support around 1,830 pence and resistance at 2,160 pence provide a clear range for active traders. Taken together, recent technical signals reinforce the sense that the share price may be building a solid base for a renewed move higher.

Fundamental analysis

On the fundamental side, Associated British Foods stands out through its scale, diversity, and financial discipline. The group achieved revenues of £19.85 billion over the trailing twelve months and delivered net income of £1.31 billion, reflecting profitable operations and effective cost controls. Though operating profit and revenue contracted slightly year-on-year, profitability remains robust, with an EBITDA of £1.24 billion and a disciplined approach to managing input costs. The company’s P/E ratio near 11.7 is attractive compared to the broader sector, suggesting the stock trades at a discount to intrinsic value—even as prospects for direct peers remain moderate. The 3.06% dividend yield enhances overall returns and may attract income-focused UK investors. Structurally, Associated British Foods is fortified by its global retail (Primark), grocery, ingredients, sugar, and agriculture divisions, all unified by a record of innovation and operational resilience. The company’s proactive investments in international expansion, especially for Primark, and its growing footprint in newer EU and US markets, add further conviction that revenue streams are becoming even more defensive and diversified.

Volume and liquidity

Market liquidity for Associated British Foods remains strong, with a three-month average daily volume of 1.12 million shares. This metric exceeds that of many UK mid-cap peers, underscoring broad market confidence and institutional participation. The sizeable free float helps reduce volatility, making the stock an appealing option for large institutional and retail investors seeking reliable entry and exit points. Sustained volume through successive quarters often indicates persistent interest from both domestic and international funds, providing a floor for valuation and supporting price recoveries when positive news materialises.

Catalysts and positive outlook

Looking ahead, Associated British Foods is poised to benefit from a range of forward-looking catalysts. The ongoing global expansion of Primark, especially into the US and continental Europe, should continue to be a major growth engine, supported by rising brand recognition and targeted store openings in high-density urban markets. The grocery segment is enjoying an 8% revenue increase year-on-year, driven by innovation, private label penetration, and shifting consumer preferences toward trusted packaged foods. Operational efficiency programmes have begun to yield higher margins, even as input inflation persists. On top of these, the group’s regular share buyback program actively supports the share price and signals management’s confidence in long-term prospects. The company also shows leadership in ESG, having launched several sustainability and responsible sourcing initiatives across its supply chain—factors that are increasingly demanded by global funds and UK institutions alike. Macro factors further underpin the positive context: the defensive consumer sector is expected to outperform in times of market uncertainty, supported by the steady demand for essential goods and affordable fashion. Regulatory stability in the UK, combined with the benefits of scale and logistics from Brexit adaptation, presents another advantage unique to Associated British Foods compared to more regionally constrained peers.

Investment strategies

For short-term investors, the present technical configuration and persistent volume suggest that Associated British Foods is well positioned for an opportunistic entry close to a technical low, with near-term upside toward resistance at 2,160 pence. For medium-term holders, the current valuation, combined with catalysts such as further Primark openings, grocery segment growth, and margin improvements, offer meaningful appreciation potential in the coming 12–24 months. From a long-term standpoint, Associated British Foods’s structural strengths—including brand power, international diversification, a robust balance sheet, and a proven, resilient business model—create a compelling foundation for portfolio inclusion. The regular dividend policy, healthy yield, and steady earnings record further reinforce the stock’s positioning as a core holding for income and growth strategies alike.

Is it the right time to buy Associated British Foods?

In summary, Associated British Foods exhibits a powerful combination of technical stability, attractive valuation, robust fundamentals, and growth catalysts that justify renewed interest among investors. The recent recovery in share price, positive shifts in volume, and clear strategic roadmap align to suggest that the stock may be entering a new bullish phase. With defensive characteristics, reliable cash flows, a strong global retail brand, and visible growth levers, the company seems to represent an excellent opportunity for those seeking resilience and upside potential in today’s volatile markets. For investors who value stability, growth, and sector leadership, Associated British Foods provides a well-grounded, high-conviction opportunity as it positions itself to capture the next cycle of sector momentum and global consumption trends.

How to buy Associated British Foods stock in the UK?

Investing in Associated British Foods stock online is straightforward and secure when using a regulated UK broker. You can choose to buy shares outright (spot buying), becoming a shareholder, or to trade on price movements via Contracts for Difference (CFDs). Each method suits different investing goals—whether long-term growth or flexible short-term trading. For a detailed comparison of the best brokers offering Associated British Foods shares, see our dedicated comparison table further down the page.

Spot buying

A cash purchase of Associated British Foods shares means you own your shares directly and benefit from any dividends paid. UK brokers usually apply a fixed commission per trade, commonly £5–£10.

Gain scenario

If the Associated British Foods share price is 2,071 pence, you can buy around 38 shares with a £1,000 stake, including a brokerage fee of about £5.

If the share price rises by 10%, your shares are now worth £1,100.

Result: +£100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on Associated British Foods shares lets you speculate on price movements with leverage, without actually owning the shares. Costs here include the spread (difference between buying and selling price) and overnight financing if the position stays open for more than a day.

Example of a CFD Gain Scenario

You open a CFD position on Associated British Foods shares with a £1,000 deposit and 5x leverage.
This means you have £5,000 of market exposure.

Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +£400 gain, on a stake of £1,000 (excluding fees).

Final advice

It’s essential to compare brokers’ fees, spreads, and trading conditions before investing to ensure you choose the best fit for your needs. Whether you go for cash shares or CFD trading, the right method really depends on your objectives, risk tolerance, and investment style. See our broker comparison for more guidance on getting started with Associated British Foods shares.

Our 7 tips for buying Associated British Foods stock

The latest news about Associated British Foods

Associated British Foods shares see positive weekly movement amid resilient UK market sentiment. Over the past week, Associated British Foods stock rose by 1.42%, demonstrating renewed confidence among domestic investors despite recent market volatility in the UK’s consumer defensive sector. This upturn is supported by a rebound in share price activity and is particularly notable against a background of cautious sector performance.

Technical signals support a potential bullish phase for Associated British Foods on the London Stock Exchange. The most recent data shows that moving averages across 20, 100, and 200 days all signalled a “Buy,” with technical indicators such as a neutral RSI (50.16) and a strong stochastic buy signal. These technical trends are being closely monitored by market professionals in the UK as potential early markers of sustained price recovery.

Ongoing share buyback programme strengthens confidence in Associated British Foods's strategic direction. The company has continued its active share repurchase initiative, a move that is often interpreted by financial analysts as a vote of confidence from management in the intrinsic value of the business. This trend highlights the company’s robust capital allocation discipline, something UK-based investors often value highly in blue-chip stocks.

Sustained robust performance in UK and international grocery segments underpins near-term growth outlook. Recent updates confirm an 8% revenue increase year-over-year in the grocery business, directly benefiting British consumers and retail partners. This improvement, coupled with operational efficiency measures, supports profit resilience in the core UK market despite broader economic uncertainty.

Associated British Foods maintains a solid dividend yield, enhancing its attractiveness for UK income-focused portfolios. With a current dividend yield of 3.06%, the stock continues to appeal to UK investors seeking stable, regular income. The consistent dividend policy reflects the underlying health and reliability of the group’s cash flows, reinforcing its role as a cornerstone for long-term domestic investment portfolios.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.