TRADERS TIPS

What City insiders are recommending . . .

BUY THIS: Tate & Lyle

LIBERUM is positive on ingredients business Tate & Lyle and this week raised its target price for the stock to 790p. It has increased its profit expectations for the firm by 8pc, largely driven by a favourable dollar to pound exchange rate – Tate’s pre-tax profits rise £1.3m for every $0.01 fall in sterling. Liberum said the firm’s decision to focus on speciality ingredients – it sold its historic sugar business, including its golden syrup brand, back in 2010 – is the right one. On Friday its shares rose 3.3pc, or 22p to 690.5p.

SELL THIS: Pearson

BROKERS at Berenberg think it’s time to sell shares in education company Pearson. Pearson has a big presence in the US market where, it is expected, college enrolments are likely to decline over the next 12 to 18 months. Berenberg also said Pearson’s courseware business was vulnerable to price pressures. Its target price for the shares is 790p. On Friday they rose 0.8pc, or 8p to 975p.