Market's view on Tate & Lyle
Published on April 2024
- Discussion includes a perspective on the company’s share price, which has risen from £7 after accounting for a special dividend.
- Stock watchers note the historical share prices, recalling when shares were at 790 pence.
- There are speculative comments about potential growth due to past dividends and stock consolidations.
- Stock watchers are considering the outlook for the fiscal year, expecting EBITDA growth of 7% to 9% based on pricing, despite reduced volumes, which are anticipated to recover in 2024.
- There are mentions of significant multi-million-pound trades and large buying activities, although there’s no direct involvement from the Board of Directors even at low share levels.
- The balance sheet is described as very good, with a P/E ratio between 11-12, suggesting the stock is undervalued.
- Comments include a cautiously positive outlook for the share price and a recent dividend increase of 14% compared to the previous year.
- A discussion addressing the confusion about Tate and Lyle’s association with the sugar industry after its divestiture of the sugar business.
- There’s a critique of a public health statement about artificial sweeteners, questioning its impact and the logic behind the advice given, considering its implications for diabetes and weight control.