Shore Capital says 'hold' Tate & Lyle
Darren Shirley, analyst at Shore Capital, has reiterated his 'hold' recommendation on Tate & Lyle (TATE.L) having attended the first day of its investor seminar in the US.
The seminar was held at the company's Commercial and Food Innovation (CFI) centre, which was opened in the second quarter of this year at a cost of $32 million.
'Shore Capital was impressed by the CFI centre, which clearly demonstrates, in our view, the commitment Tate is making to its speciality food ingredients ambitions, a commitment we feel certain customers will also clearly identify when visiting the facility. In this respect, we note customer visits are said to be up +500%,' the analyst said.
'The facility has clearly enhanced Tate's capability to add value to its customers new product development (NPD) capability, whilst we believe the alignment of the R&D and commercial functions, has added rigour to the stage gate process driving the group’s own innovation pipeline.'
However, Shirley said progress would take time, so he's sticking at 'hold' for now.