Broker snap: Panmure ups numbers at Tate & Lyle

3rd Nov 2011 12:40

Panmure Gordon has raised its target price for sweeteners firm Tate & Lyle from 615p to 645p after the group's first half profits beat expectations.Pre-tax profit rose by 38% from £136m to £180m, ahead of consensus estimates of £163m. "The out-performance is due to sucralose volumes being even better than expected (at +17%) and co-product gains being c.£9m better than indicated (versus £10m gain indicated at pre-close)," the broker notes.As such, Panmure's pre-tax profit forecasts for the current year have been lifted from £303 to £315m and from £315m to £320-325m next year.However, with the stock trading at 12 times earnings, the broker keeps its hold rating.Tate & Lyle was one of the best performers on the FTSE 100 on Thursday, rising 3.71% to 671p by 12:39.BC