Tate & Lyle Share Discussion Threads

[wad collector] 14/5/2020 08:53

Looks like the £7+ optimism was premature , going to be a very long haul back up I fear. But hard to imagine it won't recover ; demand will continue.

[philanderer] 05/5/2020 14:16

Tate & Lyle balance sheet can handle demand fall, says Jefferies
Jefferies is expecting consensus figures to come down at Tate & Lyle (TATE) but believes the balance sheet can take it.

Analyst Martin Deboo retained his ‘buy’ recommendation and target price of 720p on the stock after an unscheduled Covid-19 update.

Tate & Lyle reported a drop in demand for its sugar products as restaurants, bars, and cinemas remained closed. The shares were down 3.7%, or 26p, at 669p yesterday at the time of writing.

Although Deboo said he had expected at-home consumption to offset some of the fall in out-of-home consumption, the latest update ‘feels directionally adverse to that and will hurt profits in what is an operationally geared business’.

However, he added that ‘the balance sheet is more than robust enough to take it’.

[philanderer] 05/5/2020 10:00

Deutsche retains HOLD. tp 630p. Cut from 650p

Jefferies retains BUY. tp 760p. Up from 725p

Berenberg retains. HOLD. tp 665p. Up from 625p

[philanderer] 04/5/2020 13:47

Tate & Lyle was in the red after it said US bulk sweetener volume fell 26% in April as bars, cinemas, restaurants and sporting events were either shut or cancelled as part of the coronavirus lockdown. Industrial starch volume was 9% lower reflecting reduced demand for paper and packaging following the closure of schools, offices and a general decline in economic activity, the company said.

ADVFN market report

[philanderer] 04/5/2020 10:02

That hasn't gone down well.

[philanderer] 22/4/2020 09:10

Barclays. 'Overweight'. Tp 800p. Cut from 880p

[wad collector] 20/4/2020 16:25

Well , 2 months on , have to say that Tate not doing badly as it nibbles back at £7. Outperforming most of my portfolio. Guess the products are still selling and enough of the workers are able to continue working .
Hadn't really thought of this as being defensive as after all , the products are effectively luxuries not necessities.
I note that unlike most of my holdings , they have not made a specific Covid statement , and the last update predates the market crash.

[philanderer] 18/2/2020 14:05

Another crack at 800p ;-)

[wad collector] 18/2/2020 12:54

But what do they taste like?

[philanderer] 11/2/2020 20:42

Matmarket Launches Latest Version of Insite® Contoura Insoles, the Next Step in Comfort and Performance, in Collaboration with DuPont Tate & Lyle Bio Products

[philanderer] 10/2/2020 11:03

BERENBERG RAISES TATE & LYLE PRICE TARGET TO 810 (795) PENCE - 'HOLD'

[wad collector] 06/2/2020 15:49

Looks like "in-line" not enough to please them. Mind you a 760 target not far from current share price so they are not saying much.

[philanderer] 06/2/2020 13:12

Carrying some weight by the look of it.


Investec Securities:

With the sharp move in the share price, we think the market needed to see more. We move to Sell with unchanged estimates and TP. We continue to think the biggest impact on the share price will be the execution of a successful Ingredients deal, as the company is too exposed to Primary Products, which drag on group growth.

Tate now trades on 14.5x CY20E PE, a premium to nearest peer Ingredion and to higher growth mid-cap Consumer stocks such as C&C. This premium is unwarranted in our view, absent a deal. We move to Sell on valuation grounds, with a CY20E PE of 13.8x implied by our 760p target; this would still be at a premium to Ingredion. We await a better entry point or news of a deal.

[philanderer] 06/2/2020 10:11

Investec downgrades fom 'buy' to 'sell'

ShoreCap reiterates 'hold'

[philanderer] 06/2/2020 09:42

:-D

Looks ok.

[pierre oreilly] 05/2/2020 22:30

That's good. I was just saying yesterday to the wife that tate should leverage novel enzime immobilisation technologies.

[philanderer] 05/2/2020 19:25

Tate & Lyle partners with Zymtronix to leverage novel enzyme immobilization technologies

[philanderer] 05/2/2020 17:42

Fingers crossed

[philanderer] 31/1/2020 17:51

Trading update next thursday.

[wad collector] 28/1/2020 16:58

Not sure sucrose is old hat yet ; global consumption risen every yr

The global consumption of sugar amounted to 173.95 in 2018/2019, and is projected to increase to about 176.45 million metric tons by 2019/2020

But sweeteners rising more.

[yump] 21/1/2020 16:28

Yes, although I think it would have been pretty poor management not to have anticipated a decline in sugar sales.

Bit old but handy, (note: prices per unit of sweetness, not per unit weight)



On the face of the comment about savings not being passed onto the consumer, perhaps revenue is not affected much by the swap, although it could be. Perhaps more important that TATE's move is important to defend its sales into the market and prevent manufacturers switching suppliers ?

[pierre oreilly] 13/1/2020 09:51

On the box last night - sugar in soft drinks is down by 30% iirc. Presumably, artificial sweeteners in soft drinks is probably up by 60% to replace that sugar (anyone got actual figures?).Looks like Tate's move from sugars to sweeteners in the last couple of years was quite opportune.

[wad collector] 13/1/2020 09:40

Looks like £8 will be breached soon and not far off a 6 yr high. The market position seems to be solid.

[wad collector] 20/12/2019 18:22

Now that was a good end to a good week. Hold and prosper.

[philanderer] 16/12/2019 10:52

Bloomberg..

A $26.2 billion deal in the U.S. could impact European chemicals stocks today. International Flavors & Fragrances Inc. reached an agreement for DuPont Inc.’s nutrition division, prevailing over Irish dairy firm Kerry Group Plc as it continues to expand in the fast-growing food-ingredients business. The deal is the latest as the food-flavoring industry rushes to consolidate as growth slows and flavor makers contend with volatile raw-materials prices.