Deutsche Bank has raised its price target for Tate & Lyle PLC (LSE:TATE) from 850p to 950p, citing improved earnings quality and growth prospects following a key acquisition.
The speciality ingredients business recently completed its acquisition of CP Kelco, a leader in food and beverage texture solutions, enhancing its position in the growing "mouthfeel" market.
The German bank's analysts highlighted the strategic rationale behind the deal, which complements Tate & Lyle’s shift away from commodity products following the disposal of its US Primary Products division.
They noted that the acquisition positions Tate & Lyle to deliver faster revenue growth in the expanding food and beverage sector.
With shares changing hands for 711p in afternoon trading (up 0.6%), Deutsche reaffirmed its 'buy' rating, signalling confidence in the company's ability to capitalise on its reshaped portfolio and deliver long-term value.