LONDON (ShareCast) - (Sharecast News) - Barclays upgraded its stance on shares of Tate & Lyle on Tuesday to 'overweight' from 'equalweight' and hiked the price target to 875p from 700p, highlighting its increasing resilience.
The bank said Tate's circa 60% price-to-earnings discount to European Ingredients peers is unjustified given its growth momentum in Food & Beverage Solutions (FBS) and increasingly apparent resilience in Primary Products.

"The better-than-feared outcome of the calendar 2021 high fructose corn syrup pricing round that Tate presented last week at its Q3 21 trading statement is a key factor in our +5-6% group FY22e and FY23e EBIT upgrades, as well as our stronger FBS growth assumptions," Barclays said.

This leaves the banks' FY24 forecasts 4% ahead of consensus.

"We see increasing long-term potential for an acceleration in diversification of corn wet milling volumes from HFCS towards bio-based ingredients to drive a structural re-rating," it said.

At 1335 GMT, the shares were up 2% at 717.60p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE