Tate & Lyle Share Discussion Threads

[yump] 31/5/2019 09:32

That's probably more to do with the 800p resistance than anything else, looking back a few years. Plus if nothing else, investors are so caught up with pseudo-science that resistance levels prove a self-fulfilling prophecy. That gives more 'evidence' to the chartists who write more books and run more courses based on their 'proof'.

If you were trading, 800p is a very blatent sell based on the 'rules'. For dividends its a secure stock.

Meanwhile the climate actually is changing and we have actually caused it.

[wad collector] 29/5/2019 10:28

Sadly the share price has not been encouraged by those broker notes , dropped off a small cliff this week. Hold and prosper?

[philanderer] 24/5/2019 09:07

updated:

24th may Barclays overweight tp 850p up from 800p
24th may Deutsche hold -
23rd may Shore Cap hold -
23rd may Liberum buy tp 900p

[philanderer] 23/5/2019 13:12

Liberum reiterates 'buy'... tp 900p

Note....

FY’19 adj. pre-tax profits of £309m and adj. diluted EPS of 52p both rose 4% beating consensus by 2%. Group adjusted operating margin was flat at 11.1% with a 10bps rise to 19.4% at Food & Beverage Solutions ex-Sucralose and a 100bps decline to 8.7% at the Primary Products division due to £10m lower commodity profits. Food & Beverage Solutions delivered 3% volume growth with 3% in North America and 15% volume growth in AsiaPacific LatAm reflecting healthy returns on Tate’s investments.

Adj. FCF remains strong at £212m driving a reduction in net debt / EBITDA to 0.8x and supporting a 2.4% rise in DPS. In FY20, Tate guides to continuing progress in Food & Beverage solutions and gains from productivity initiatives to offset lower Sucralose profits leading to flat to low single-digits EPS growth in constant FX. Reiterate BUY and GBp 900 TP.

[philanderer] 23/5/2019 11:10

CNBC video interview this morning with CEO Nick Hampton

[philanderer] 23/5/2019 11:02

Tate & Lyle posts drop in FY profit, sees 2020 EPS growth flat

[philanderer] 23/5/2019 09:19

It's ok , nothing special.....earnings per share growth in constant currency to be broadly flat to low-single digit.


A bad day to be reporting.


23rd may Shore Cap hold - reiterates

[suetballs] 23/5/2019 07:43

Reduced outlook normally equals share price fall these days. Let's see.
Overall I am happy.
Suet

[lenzcrafter] 23/5/2019 07:09

Seems like a decent report

[funkmasterp12] 23/5/2019 07:09

Looks like a small beat on EPS and Pre-Tax, maybe tainted slightly by the outlook. But still, pretty solid looking.

[connorcampbell] 22/5/2019 13:29

!YOUTUBEVIDEO:j6MSQlj1dPI:
Will Tate & Lyle remain just as sweet following its full year results on Thursday?

The main takeaway from the details-light Q3 statement was that Tate & Lyle is expecting earnings per share in constant currency growth to be in a mid-single digit range, though ‘towards the lower end’ due to energy and transportation cost inflation and a year of strong commodities performance.

Analysts, meanwhile, are expecting the company to post a slight improvement in adjusted pre-tax profit on Thursday, from £301 million to £303 million year-on-year, with adjusted diluted earnings per share at 51.1p, roughly a 2% increase on 2018. Investors will also want to hear of any acquisitions given that CEO Nick Hampton was talking up the prospect of such at the end of April.

Read what Spreadex analysts have to say, or watch a 60 second preview, here:

[connorcampbell] 22/5/2019 13:29

Will Tate & Lyle remain just as sweet following its full year results on Thursday?

The main takeaway from the details-light Q3 statement was that Tate & Lyle is expecting earnings per share in constant currency growth to be in a mid-single digit range, though ‘towards the lower end’ due to energy and transportation cost inflation and a year of strong commodities performance.

Analysts, meanwhile, are expecting the company to post a slight improvement in adjusted pre-tax profit on Thursday, from £301 million to £303 million year-on-year, with adjusted diluted earnings per share at 51.1p, roughly a 2% increase on 2018. Investors will also want to hear of any acquisitions given that CEO Nick Hampton was talking up the prospect of such at the end of April.

Read what Spreadex analysts have to say, or watch a 60 second preview, here: hxxps://spreadex.com/?tid=392184

[technocat] 19/5/2019 18:36

This Thursday according to IC

[lenzcrafter] 19/5/2019 18:16

Does anyone know when results are due?

[lenzcrafter] 17/5/2019 11:10

If it can just stay above £8 I would be happy. Just needs a little consolidation.

[philanderer] 17/5/2019 11:07

Results next thursday

[philanderer] 16/5/2019 17:25

Indeed WAD , TATE the second best for me , SPX has been going gangbusters lately.

[wad collector] 16/5/2019 08:44

£8 before the week is out? Strongest performer in my portfolio at the moment. Let's keep the bid rumour rolling....

[philanderer] 13/5/2019 18:22

Largest holding once again :-O

[philanderer] 10/5/2019 13:46

French rumours back ?

[philanderer] 08/5/2019 12:22

8th may Jefferies hold tp 720p up from 700p

[wad collector] 07/5/2019 17:58

Not a big holding of mine , happy to hold on longer. I want £8 at least! And then I probably will convince myself £9 is the target....and then it will drop back to £6..

[philanderer] 04/5/2019 10:04

wad, I scalped another 10% off the top yesterday. Still one of my largest holdings.

[wad collector] 03/5/2019 17:09

I do like a good bid rumour. Is this an opportunity to take some profits , or just another upwards step? Answer will be provided at some unspecified point in the future.

[philanderer] 03/5/2019 13:51

Liberum note:

Earlier this week, the FT Alphaville blog cited unconfirmed market chat that Tate was subject to a potential takeover by private French food and industrial ingredients group Roquette Freres. According to the FT Alphaville blog “formal contact” was made and that provisional financing is in place. We subsequently heard further market speculation that a potential bid could come in the arena of 900p per share.

We note that this is all entirely market speculation and that no formal offer has been submitted that we are aware of. Roquette is a leading global player in plant-based ingredients and new vegetable proteins. The group addresses provides ingredients for Food, Nutrition and Health markets and has around €3.3bn (£2.8bn) in annualized revenue and 20 plants around the world.

We estimate that the company will deliver revenues of £2.8bn in FY’19 (March fye), adjusted EBITDA of £451m and pre-tax profits of £242m. Therefore, in our view, if a deal does ultimately materialize it may end up being more a merger of equals. As part of that commitment, the company is announcing a series of measures to continue to underpin long-term-value creation:

On 26th April Archer Daniels Midland announced a major restructuring plan that will repurpose its corn wet mill in Marshall, Minnesota, to produce higher volumes of food and industrial-grade starches as well as liquid feedstocks for food and industrial uses. This change will phase out production of high-fructose corn syrup at that facility as soon as committed deliveries are complete which should further reduce volumes and support HFCS pricing in the market.

The group also intends to create an ethanol subsidiary which it may spin off to shareholders. ADM appears to be focused on creating a group more focused on value-add food, beverage and industrial ingredients similar to Tate & Lyle.

Tate’s clear focus on lifting returns, cash flow and margins, especially in Food & Beverage Solutions is paying off. Food & Beverage Solutions volumes are now growing nicely, particularly in North America as Tate takes share. We expect Tate will show solid group and Food & Beverage Solutions EBIT margin expansion over FY19-20E driven by the group's 2020 ambitions.

In our view, the market underestimates the scope of Tate's margin potential, which could drive strong upside risk to both earnings and the share price. Our benchmarking analysis with closest peer Ingredion suggests strong potential share price upside if Tate can approach Ingredion’s margin levels in speciality ingredients.

We reiterate our BUY rating and 900p target price. Valuation remains attractive – Tate & Lyle trades on a cal’19E EV/EBITDA of 8.8x, an 8% premium to US peer Ingredion. On P/E basis, Tate trades on a cal’19E P/E of 14.5x. We expect Tate will continue to pay a progressive dividend and forecast another 2.5% rise to 29.4p in FY’19E, implying an attractive 4.4% cal’19E dividend yield. Reiterate BUY and 900p TP.