You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Tate & Lyle

0
Written by: YourMoney.com
07/08/2017
Helal Miah, investment research analyst at The Share Centre, picks Tate & Lyle as stock of the week.

Tate & Lyle, originally famous for its sugar refining business, is experiencing increasing demand for its products in the US market. The company has been a beneficiary of currency movements with 75% of its revenue generated from the US. Furthermore, the group is expecting increased sales from emerging markets and new products.

The group has expanded its business by providing innovative ingredient solutions for beverages, dairy-based products, soups and sauces due to a demand from consumers for healthier options. Its products include liquid sweeteners, texturants and stabiliser systems.

Interested investors should note the firm’s first quarter trading update in July stated that it had made an encouraging start to the year, with profit and volume ahead of last year. Encouragingly, the group expects to continue to make progress in the year ahead. Future prospects are for the Speciality Food division to contribute around 70% of group profits, emerging markets to generate 30% of sales and $200m of sales from new products by 2020.

There is a hope for an improvement in the quality of earnings, as a result of some major structural change initiatives from management. We recommend the stock as a ‘buy’ for investors willing to accept a medium-to-high level of risk.

Furthermore, we suggest investors build a holding over time, as the stock has been volatile over the past year. Investors should appreciate that Tate & Lyle has the added attraction of a 4.2% prospective yield.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
electricity pylon
Cost of energy to be reviewed

An independent review into the cost of energy has been launched, days after British Gas announced electricity price hikes of...

Close