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CHR - Chr Hansen Holding A/S News Story

DKK559.2 -1.4  -0.3%

Last Trade - 3:59pm

Sector
Consumer Defensives
Size
Large Cap
Market Cap £8.63bn
Enterprise Value £10.07bn
Revenue £799.4m
Position in Universe 86th / 1836

STOCKS NEWS EUROPE-Tate bolstered by double JPMorgan upgrade

Fri 7th February, 2014 11:08am
Shares in sweetener maker Tate & Lyle  TATE.L  advance 2.1 percent, among the top risers on Britain's FTSE 100  .FTSE , with traders citing a double upgrade by JPMorgan, to "overweight" from "underweight", as the catalyst for the move. Trading volume in Tate is robust at around half of its 90-day daily average by 1051 GMT, against that for the UK benchmark at just a fifth. "Tate has a high-quality, health-focused specialty ingredients business, which we believe will drive faster EPS growth from FY15, triggering re-rating of the shares," JPMorgan says in a note on the food ingredients sector.  JPMorgan lifts its target price for the shares, currently trading at 776.5 pence, to 900 pence from 735 pence. Tate's stock has lagged the FTSE 100 over the last six months, partly due to concerns over the pricing of artificial sweetener sucralose, which it sells under its Splenda brand. JPMorgan reckons these worries are now priced in. This leaves it trading on a 12-month forward price/earnings ratio of 12.6 times, against 17.9 times for Irish food group Kerry  KYGa.I , Thomson Reuters DataStream shows. JPMorgan downgrades its rating for Kerry, off 0.3 percent, to "neutral", saying it may be impacted by headwinds to packaged food growth in 2014, and that its shares look fully valued. It also lowers its rating for Danish food ingredients maker Chr. Hansen CHRH.CO , down 0.2 percent, to "neutral", citing "risks to top-line growth from the high exposure to the U.S. market and particularly the supplements market". Reuters messaging rm://tricia.wright1.thomsonreuters.com@reuters.net Keywords: MARKETS EUROPE STOCKSNEWS
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