The consensus analyst price target for Tate & Lyle stock has been revised sharply downward, dropping by roughly 12 percent from £6.26 to £5.53 per share. This adjustment comes as analyst sentiment has grown more divided. Some are expressing optimism about the company’s positioning, while others point to emerging challenges and market uncertainties. Stay tuned to discover how you can stay informed as the outlook for Tate & Lyle continues to evolve.
Recent analyst commentary on Tate & Lyle reflects a shift in market sentiment, highlighted by several rating changes and significant price target revisions. The following summarizes bullish and bearish perspectives as communicated by major investment firms in recent weeks.
🐂 Bullish Takeaways
Citi continues to view Tate & Lyle positively, maintaining a Buy rating despite lowering its price target to 540 GBp from 670 GBp. This suggests Citi still sees value in the company’s execution and long-term growth potential, even as near-term challenges are acknowledged.
Bullish analysts highlight strengths in strategy execution and management’s focus on cost control, with some optimism about growth momentum as industry conditions evolve.
However, even among supporters, there are reservations regarding valuation and the extent to which upside is already reflected in the stock price.
🐻 Bearish Takeaways
Barclays’ Alex Sloane downgraded Tate & Lyle to Equal Weight from Overweight, reducing the price target to 430 GBp from 650 GBp. Sloane pointed to concerns that revised fiscal 2026 guidance may not be conservative enough, especially with potential pressure from a weaker upcoming contract round.
Morgan Stanley also turned more cautious, with Lisa De Neve downgrading the stock to Underweight from Equal Weight and lowering the price target to 500 GBp from 590 GBp. The analyst cited higher risk to medium-term targets, particularly after Tyson Foods’ decision to phase out sucralose from its U.S. products.
Additional commentary from Morgan Stanley, which had recently initiated coverage at Equal Weight with a 590 GBp price target, noted that near-term growth is “clouded” by a softer and more deflationary market backdrop.
Across bearish commentary, reservations center on execution risk, uncertainty surrounding upcoming contract negotiations, and reduced confidence in the achievement of medium-term growth targets.
Tate & Lyle has released new earnings guidance for the fiscal year ending 31 March 2026, forecasting a group revenue decline of 3 percent to 4 percent in constant currency compared to pro forma comparatives.
The company expects revenue to decrease by a low single-digit percentage versus the prior year, indicating ongoing softer demand in its core markets.
Industry analysts are closely monitoring how Tate & Lyle navigates these headwinds, with attention on the company’s performance during upcoming contract negotiations and its ability to deliver on updated forecasts.
The consensus analyst price target has fallen significantly, down approximately 12 percent from £6.26 to £5.53 per share.
The discount rate remains unchanged at 6.82 percent.
The revenue growth forecast has decreased, falling from 8.65 percent to 7.29 percent.
The net profit margin is slightly lower, down from 9.80 percent to 9.18 percent.
The future P/E ratio has slightly declined, moving from 18.92x to 18.53x.
Narratives empower investors by connecting a company’s story to its financial forecasts and Fair Value. They let you see not just the numbers, but the reasons behind them, showcasing real perspectives from investors like you. On Simply Wall St’s Community page, Narratives update dynamically as new news or earnings are released, making it easy to compare Fair Value to price and decide when to buy or sell. This makes Narratives a smarter and more accessible tool for investment decisions, used by millions.
Want to understand what’s really driving Tate & Lyle’s share price? Read the original Narrative for powerful real-world insights, including:
How integrating CP Kelco is expected to boost growth, improve margins, and deliver $50 million in cost synergies over the coming years.
Why the company’s focus on innovation, strong cash flow, and strategic partnerships like Manus could create new revenue streams and strengthen market positioning.
Key risks to watch, such as regional input cost deflation, integration challenges, and volatile consumer sentiment that could affect revenue and profits.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TATE.L.
