MARKET TALK: Goldman Downgrades Tate & Lyle To Sell

13th Jul 2010 08:11

0711 GMT [Dow Jones] Goldman Sachs downgrades Tate & Lyle (TATE.LN) to sell from neutral and cuts price target to 390p from 493p. The shares are trading at a premium to the ten-year historical average in anticipation of improved performance due to a focus on specialty food ingredients, says GS. However, the brokerage says earnings improvements as a result of restructuring will take some time to materialize given underlying operational weaknesses and challenges faced by other divisions. GS adds that the company falls into the bottom quartile of earnings growth relative to mid-cap peers. Shares -1.9% at 477p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 13, 2010 03:11 ET (07:11 GMT)