nk1999
02 Jun 2016
Re: Liberum Update from them today - Target increased to 730p:"Tate & Lyle has turned a cornerTate & Lyle (TATE) is turning the corner after a ‘torrid time’ and is ‘on the path of sustained recovery’.Liberum analyst Robert Waldschmidt reiterated his ‘buy’ recommendation and target price of 730p on the shares, which rose 0.4% to 628.5p yesterday.‘We lift our full year 2017/18 pre-tax profits by 1-2% and expect the shares can rerate as Tate turns the corner on a torrid time,’ he said. ‘Tate is on the path of sustained recovery. We forecast an 11% rebound in full year 2017 pre-tax profits as speciality food ingredients margins improve, bulk and sucralose profits stabilise and new plant capacity comes online. ‘Over 2016-21 we expect an 8% earnings per share compound annual growth rate with upside risk if Tate executes its strategy to shift volumes to speciality food ingredients faster or shifts the portfolio via bolt-on mergers and acquisitions.’ "
nk1999
06 Apr 2016
Liberum From Citywire:"Tate & Lyle has turned a corner Tate & Lyle (TATE) faced operational challenges in 2015 but is now recovering and creating ‘solid momentum’.Liberum analyst Robert Waldschmidt reiterated his ‘buy’ recommendation and target price of 700p on the shares, which fell 0.8% to 583.5p yesterday.‘Tate & Lyle issued a short two-line trading update stating that its 2016 fourth quarter (to the end of March) trading performance was in line with both the expectations and the outlook included in the third quarter 2016 trading update,’ he said. ‘This implied that Tate continues to maintain its guidance of full year profit before tax of £193 million at constant exchange rates. The statement reflects that Tate’s recovery post the operational challenges faced in full-year 2015 continues to progress well and we believe it carries solid momentum into full year 2017.’He added that Tate ‘has turned the corner and full-year 2016 is an inflection point’ and there is ‘scope for significant upside’."
Broncomaniac
17 Mar 2016
Re: Sugar Tax Indeed, I read in the Times today that the budget is actually seen as a positive for Tate, as it creates more opportunity for artificial sweeteners.
Card Player
16 Mar 2016
Re: Sugar Tax "We sold our EU Sugars refining business (now operating under the name Tate & Lyle Sugars) to T&L Sugars Ltd, part of American Sugar Holdings, Inc in 2010."Source: [link] far as 'TATE' and 'sugar tax' is concerned, they seem to have lost their 'sweet tooth'.TATE seem to be 'ahead of the game'!
Broncomaniac
16 Mar 2016
Sugar Tax I'm surprised the SP has been hammered a bit more by the budget announcement of a 'sugar tax'. Has the company diversified enough into specialty ingredients that its not a concern?Even so, I expected the SP to get hammered just because of the association with sugar.
nk1999
15 Feb 2016
Liberum "Liberum: Tate & Lyle ‘turning the corner’ Liberum analyst Robert Waldschmidt feels the recent sell-off in Tate & Lyle (TATE) has been unwarranted and believes the company is back on track, despite softer demand in the Americas. He maintained a ‘buy’ recommendation, with a target price of 700p on the shares, which fell 0.8% to 535.5p on Friday. ‘In our view, Tate & Lyle is turning the corner on its recent woes and is on track to execute a sustained recovery,’ he said.‘We expect 2016 will prove an inflection point and forecast an 11% rebound in 2017 pre-tax profits as one-off items drop out and new speciality food ingredients plant capacity comes online. ‘In our view, Tate & Lyle’s historical difficulties are grounded in execution and strategic ambition, areas that management is addressing.’ "From Citywire.
nk1999
16 Jan 2016
Liberum From ADVFN:"Tate & Lyle was a high riser on Friday following an encouraging capital markets day.Liberum, which reiterated its 'buy' rating on the stock, said Tate hosted a "confident" CMD focused on the group's Speciality Food Ingredients unit.The broker said Tate laid out credible plans to deliver its ambition to transform the group into a materially SFI-focused business by 2020."Over the past 18 months, Tate has significantly upgraded SFI's capabilities and skills while realigning the group's portfolio to benefit from global demand for healthier and convenient foods. We were impressed by the SFI team and believe they are well positioned to outperform end-market growth of 4-5% growth and expand margins."Liberum expects Tate's recovery to lead to improving free cash flow generation as margins rebound.It forecasts a strong pick-up post FY16 with free cash flow that covers progressive dividend payments from FY17.In addition, it said improving FCF generation puts Tate's balance sheet on a better footing. The broker estimates a 40% drop in net debt by FY18, which in turn will give management the flexibility to accelerate investment in SFI or undertake bolt-on M&A."nk
Broncomaniac
06 Nov 2015
Re: 600p - O/T I currently have 21 companies in my portfolio, so I'm not looking to add any right now, but I'd like to increase my weightings in some. I recently made a small purchase in JMAT and would like to double up to bring it in line with my average holding size. I also want to make smaller increases in FEVR, PFD and CNKS. I just received a chunky dividend from CNKS so I have good feelings about it currently!
nk1999
05 Nov 2015
Re: 600p - O/T I also held Treatt, but have sold that one out after a quick 17% gain was on table in just one month after buying. I thought their cash position in the short term was weak and a Rights issue a possibility as well (due to plant shifting). However I like that company too and may get back in on weakness.Anyway, I would be interested in knowing the other shares that are on your mind for buying, if you sell Tate or otherwise.nk
Broncomaniac
05 Nov 2015
Re: 600p You make a good point, I'm not that keen on selling. However I have other stocks competing for funds, and I already have a chunky holding in another food speciality company (flavourings expert Treatt), so I feel I already have a decent exposure to this area. I shall think about it over the next two weeks leading up to the dividend.
nk1999
05 Nov 2015
Re: 600p Bronco,Today's statement virually assures that dividend (28p per year) is safe and things are looking up (relatively, compared to recent doom and gloom). Why would you want to sell and give up the 4.6% yield and possible modest capital gain?nk
Broncomaniac
05 Nov 2015
Re: 600p Well it finally cracked 600p, in fact flew over it, unfortunately I took my eye off the ball and it seems to have retraced most of the gains. I would of been out at 620p! Holding for now.
nk1999
04 Nov 2015
Re: 600p Results due tomorrow morning. That should sort out the short term direction (up or down)....Fingers crossed.nk
Broncomaniac
04 Nov 2015
600p Getting over 600p seems to be proving quite a challenge! It feels like TATE has been repeatedly bashing its head against the ceiling.I was thinking of selling out before it goes ex-div in a couple of weeks, if it can just break this psychological barrier I feel there could be another 20p gain there in the next two weeks. Just my gut feel of course.
nk1999
10 Oct 2015
Shore Capital From Citywire:"Tate & Lyle on track but no upgrade yetConfidence is growing in sugar maker Tate & Lyle (TATE) after a more stable period of trading.Shore Capital analyst Darren Shirley reiterated his ‘hold’ recommendation but has no target price on the stock following a six-month trading update to 30 September. The shares fell 1.8% to 569p yesterday.‘After a series of downgrades through full year 2014 and full year 2015, it is pleasing to see a more stable period of trading,’ he said, noting the speciality food ingredients arm was on track to deliver extra capacity and ‘sucralose is more robust that expected’.‘Tate & Lyle stock has had a strong Q3 2015, we believe both reflecting growing confidence that the group performance has stabilised and the potential for a return to growth in full year 2016 – we believe [the] update supports such expectation though do not see sufficient positive news to move the shares on, as such we reiterate our ‘hold’ stance.’ "
