This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Defensive non-cyclical sector, offers investor protection. Analysts at Jefferies (13 Jun) said shares fairly priced around 670p, a level revisited in July, and which is our short-term target. It also said the company was outperforming US peers, and had ambitious 2019 guidance. Shares jumped in late May, reacting to FY results. Supportive 4-5% dividend yield.
Risks to TATE shares include a downturn in demand for food ingredients, sugars and sweeteners. A global recession could be dangerous, as could prolonged Brexit uncertainty or trade disruption and broker downgrades. Any further crackdown on sugar (sugary drink tax) could be a negative.
Consensus is biased positive with 93% of brokers saying either Buy or Hold, and only 7% saying Sell. This is supported by 89% of analysts suggesting upside from current levels with a medium-term target price of 716p being well above our objective of revisiting recent highs.
Next Event: Capital Markets Day, 12 Sept; H1 Results, 8 Nov
Latest Broker 12-Month Consensus: 22% Buy, 71% Hold, 7% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 1.1 | -3.1 | 9.4 | -0.7 | -6.1 | -11.2 | 17.4 | -0.1 | -23.2 |
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Prepared by Michael van Dulken, Head of Research