Tate & Lyle PLC (LSE:TATE) will report half-year results next Thursday, fresh from a profit warning that triggered an 18% share price drop.
Ahead of the announcement, UBS slashed its price target for the FTSE 250 company to 390p from 590p and cut its earnings forecasts following the warning at the start of October.
The Swiss bank reduced its first-half 2026 organic sales growth estimate by 560 basis points to -3.5% and its adjusted EBITDA forecast by 13% to £207 million.
For the full year, analysts expect organic sales to fall 3.1% and EBITDA of £408 million, around 11% lower than previous estimates and below consensus.
Three major investor concerns were flagged: the company’s lacklustre growth record, questions about the speciality nature of its portfolio, and the risk of further downgrades.
It noted that management’s guidance implies a second-half recovery despite ongoing demand weakness, leaving credibility “under scrutiny.”
While UBS kept its 'neutral' stance on valuation grounds, it said the key challenge for management is to rebuild investor confidence and deliver on expectations following multiple guidance revisions.
Other key items to watch in the results will be organic sales trends, contracting progress, and free cash flow development.