Morgan Stanley downgrades Tate & Lyle, shares slide

(Sharecast News) - Tate & Lyle tumbled on Monday as Morgan Stanley downgraded the shares to 'underweight' from 'equalweight' and cut the price target to 500p from 590p. The bank said there is a higher risk to Tate & Lyle's mid-term targets after Tyson Foods said it would phase out sucralose from US branded products.

MS said there is a risk that more consumer packaged goods companies could follow.

The bank said this could weigh on the share price, with sucralose accounting for around 9% of Tate & Lyle's group sales. It added that investors can find superior investment opportunities elsewhere.

At 1250 BST, the shares were down 6% at 469.53p.