Broker tips: Tate & Lyle, Aberdeen, AMEC

13th Feb 2014 12:38

Shore Capital has reiterated its 'hold' stance and sugar and sweeteners group Tate & Lyle following a 'constrained' third-quarter trading update in which it scaled back its profit guidance for the full year.The broker said has Tate & Lyle invested in its SFI infrastructure in recent years to improve visibility and build control over it profits stream. "However, today's statements confirms to us that despite such investment, large elements of the Bulk Ingredients and (it appears) sucralose profit streams remain out of the companies control, whilst volume momentum from Speciality Food Ingredients still remains modest."Jefferies has cut its rating for fund manager Aberdeen from 'hold' to 'underperform', saying that the recent acquisition of Scottish Widows Investment Partnership (SWIP) will not compensate for the slowdown in the group's main equities business."ADN's future prospects mean its earnings deserve, in our view, a lower multiple," said Equity Analyst Jason Streets. He lowered his target price for the stock from 430p to 350p.Canaccord Genuity has retained a 'buy' rating for oil engineer AMEC, showing optimism about the company's firm offer for Swiss rival Foster Wheeler."The deal is highly earnings accretive for AMEC and is in our view the most important driver in the short to medium term," said Analyst Alex Brookes. He said that while there remains a number of regulatory and shareholder approval hurdles, they should not be a problem.BC