Tate & Lyle share prices have been under pressure in recent months as the company has been hit by a number of headwinds. The most significant of these has been the sharp decline in sugar prices, which has weighed on Tate & Lyle’s profits. In addition, the company has also been hurt by Brexit-related uncertainty and weakness in its specialty foods business.
However, Tate & Lyle shares look attractively valued at current levels and could be worth a closer look for long-term investors.
Tate & Lyle shares are currently trading at 613.5p, down from their recent high of 714p. This decrease in share price is due to the announcement of a possible takeover bid from US food group ADM.
While this takeover bid has not been formally announced yet, it is rumored that ADM is preparing an offer of around £8 per share for Tate & Lyle.
This would value the company at approximately £3 billion.
If this takeover bid does go ahead, it would be one of the largest acquisitions by a US food group in Europe in recent years. It would also give ADM a significant presence in the UK food market.
However, the Tate & Lyle board is reportedly not interested in selling the company and will try to resist any takeover attempt. Given the current share price, it seems that investors are not confident that a deal will be agreed. Only time will tell if ADM will succeed in its attempts to acquire Tate & Lyle.
TATE & LYLE | Food Ingredients Company | UK Dividend Stock
Tate And Lyle
Tate & Lyle is a British sugar company and one of the world’s leading providers of Tate And Lyle glucose syrups, fructose syrups, molasses and related products. It is also a major producer of specialty food ingredients, including starch, emulsifiers and fermentation products. The company was formed in 1921 from the merger of two historic British sugar companies: Henry Tate & Sons and Abram Lyle & Sons.
Today, Tate & Lyle operates from over 30 manufacturing sites in more than 20 countries around the world. The company employs over 4,500 people globally and its products are sold in over 80 countries.
Credit: www.theguardian.com
What is Tate & Lyle’S Share Price
Tate & Lyle PLC is a British-based multinational agribusiness. Its principal activities are the production and sale of sweeteners, starches, ingredients and biomaterials, principally derived from corn (maize) and sugar cane. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Tate & Lyle was formed in 1921 from a merger of two sugar refiners: Henry Tate & Sons (established 1859) and Abram Lyle & Sons (established 1881).
What Has Been the Recent Trend in Tate & Lyle’S Share Price
In the past year, Tate & Lyle’s share price has trended downwards. The company has been under pressure due to a number of factors, including Brexit uncertainty, weak demand for some of its key products, and increased competition. As a result, Tate & Lyle’s share price is now around 20% lower than it was this time last year.
While there may be some short-term volatility in the stock price, it is likely that the overall trend will continue to be downwards in the coming months.
What are Analysts Predicting for Tate & Lyle’S Share Price
Tate & Lyle’s share price is currently trading at around 675p, and analysts are predicting that the company will report strong results for the full year. The company is expected to benefit from continued demand for its products, as well as from cost-saving initiatives. Analysts expect Tate & Lyle to report earnings per share of 43.6p for the full year, which would represent an increase of 10% on the previous year.
The shares are currently trading on a forward P/E ratio of 15.5, which is in line with the historic average.
What are Some Factors That Could Impact Tate & Lyle’S Share Price
Tate & Lyle is a publicly traded company on the London Stock Exchange. As with any publicly traded company, there are a number of factors that could impact Tate & Lyle’s share price. Some of these include:
-The overall performance of the London Stock Exchange. If the stock market is having a good day, Tate & Lyle’s shares will likely rise. Conversely, if the market is down, their shares may fall.
-Economic conditions in both the UK and globally. If there is economic uncertainty or recessionary fears, this could lead to investors selling off their holdings in Tate & Lyle and pushing the share price lower.
-The performance of Tate & Lyle’s competitors.
If another sugar producer announces strong earnings or raises prices, this could put pressure on Tate & Lyle’s share price as investors seek out better opportunities elsewhere.
-News about Tate & Lyle itself. Any major news announcements from the company – such as a new product launch or large contract win – can have an impact on the share price (usually positive).
Conclusion
Tate & Lyle share price has been on a steady decline since 2014. The company is currently facing problems with its sugar business, as well as competition from cheaper alternatives. Despite these challenges, Tate & Lyle is still a profitable company and its share price may rebound in the future.
