UK MARKET TALK ROUNDUP: SHARES LOSING

13th Jul 2010 08:11

Stocks on the fall in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 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]) 0710 GMT [Dow Jones] Goldman Sachs downgrades Premier Foods (PFD.LN) to neutral from buy and cuts the price target to 22.5p from 51p. Sees few near-term catalysts for a re-rating. Thinks concerns over Premier's leverage and pension liability will continue to weigh on the shares. Notes that since being added to Goldman's buy list in May '09, the shares are down 48% versus the FTSE World Europe. Thinks this underperformance reflects weak underlying trading and the market's concerns on the pension and debt. Shares are -1.9% at 20p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 13, 2010 03:11 ET (07:11 GMT)