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Food & drink

Tate & Lyle looks to showcase growth ambitions post-CP Kelco deal

Deutsche Bank is keeping the faith with Tate & Lyle PLC (LSE:TATE) ahead of its upcoming Capital Markets Event, reiterating a 'buy' rating and setting an 800p price target.

Shares in the food ingredients are currently trading at 544.5p.

The spotlight on 1 July will be the group’s newly acquired CP Kelco business.

Management is expected to walk investors through how this deal strengthens Tate's offering, particularly in texturants like pectin and other plant-based thickeners that are increasingly important in clean-label and health-conscious food formulations.

According to Deutsche analyst Damian McNeela, the event will also cover how Tate's expanded capabilities in mouthfeel, the texture and sensory profile of food, are helping it win business and stay ahead of shifting consumer demands.

More broadly, Tate plans to set out how it intends to grow by tapping into global trends like health, wellness and sugar reduction.

A follow-up visit to the company’s innovation labs and pectin facility in Denmark on 3 July will give investors a closer look at the science underpinning its ambitions.

Deutsche sees the event as a chance for Tate to show it has moved from restructuring to a more confident growth footing.

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