Tate & Lyle PLC

TATE: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 499.00	Nmfvl	Vghcphynp

Initiating on Tate & Lyle With a Narrow Moat Rating, GBX 900 Fair Value Estimate; Shares Undervalued

Diana Radu

Jul 6, 2022

We initiate coverage of Tate & Lyle, or T&L, with a GBX 900 per share fair value estimate, a narrow moat, and standard capital allocation rating. Our medium uncertainty rating reflects the exposure of the business to volatile commodity markets and especially corn pricing, offset by the defensive nature of its packaged foods end markets. Shares screen as undervalued at current levels, trading at a 14% discount to our fair value estimate.

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