Citi upgraded Tate & Lyle on Friday to ‘buy’ from ‘neutral’ as it said the risk/reward looks attractive ahead of the capital markets day.
Tate & Lyle
16 May 2025 10:30:23
Source: Sharecast
"Tate’s valuation seems stuck at levels commonly seen for commoditised players despite its portfolio migration, which in our view appears to be due to the market focusing on potentially misleading elasticity metrics," it said.
"This perception could be addressed at the July CMD should the company demonstrate that ‘new Tate’ has secured a broader access to the reformulation profit pool, decoupling from end market weakness whilst supporting a 7-9% EBITDA algo post FY26 transition."
It pointed to scope for the valuation gap versus peers to be closed and limited downside risk to FY25 earnings.
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