Tate & Lyle

New CEO outlines growth ambitions

  • Sectors : Foods
  • Companies : Tate & Lyle

Ratings and price correct at time of issue.

  • Tate & Lyle

    Closing Price: 67920p

  • RATING 17/02/16

  • PREVIOUS RATING 13/02/14

    UNDERPERFORM

DAVY VIEW

Post Tate & Lyle’s FY 2018 results, we are upgrading our FY 2019 operating profit and adjusted diluted EPS forecasts by 6% and 10% respectively with profit growth remaining weighted to Tate’s Commodity business, Primary Products. New CEO Nick Hampton unveiled a refreshed growth strategy which centres on M&A, innovation and productivity savings. Management actions to accelerate growth are a welcome development, although it will take time for Hampton’s new ambitions to materialise and for Tate’s higher margin Food & Beverage Solutions division to return to sustainable growth. As such, we retain our ‘Neutral’ rating.

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May 30 2018, 10:15 IST/BST

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