Tate & Lyle PLC (LSE:TATE) got a lift on Tuesday after Barclays upgraded the stock to ‘overweight’, arguing that the sweetener and food ingredients group is finally showing signs of turning a corner.
In a research note, Barclays said Tate’s valuation was hovering near multi-year lows despite meaningful improvements to its product portfolio and integration of recent acquisitions.
With increased confidence in margin recovery at CPK, its recently acquired US business, the bank sees the risk/reward as “attractive”.
Much of the share price pressure this year has stemmed from uncertainty over the group’s financial outlook for 2026.
Executives have been tight-lipped, only saying that they expect earnings before interest, tax, depreciation and amortisation (EBITDA) to improve.
Barclays noted that last week’s pre-close update confirmed fourth-quarter performance was in line with February’s revised guidance — a welcome sign that things haven’t worsened.
Full-year results are due in May, with strategy updates expected in July.
Tate & Lyle shares rose 1% to 546.71p.