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Tate & Lyle plc (LON:TATE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.
Following the upgrade, the current consensus from Tate & Lyle's three analysts is for revenues of UK£1.8b in 2025 which - if met - would reflect a meaningful 13% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 33% to UK£0.46. Previously, the analysts had been modelling revenues of UK£1.6b and earnings per share (EPS) of UK£0.39 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
View our latest analysis for Tate & Lyle
Despite these upgrades, the analysts have not made any major changes to their price target of UK£8.75, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Tate & Lyle is forecast to grow faster in the future than it has in the past, with revenues expected to display 13% annualised growth until the end of 2025. If achieved, this would be a much better result than the 11% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.8% annually. Not only are Tate & Lyle's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Tate & Lyle.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Tate & Lyle analysts - going out to 2027, and you can see them free on our platform here.