Liberum Capital has upgraded its recommendation on sugar-substitute producer PureCircle [LON:PURE] to ‘buy’ from ‘hold’, stating that the recent share price fall is unjustified. The shares have slipped by 5 per cent in the past month and are down by 11 per cent on a three month view. The broker also highlighted that the company’s first half trading update confirmed strong demand for its stevia products with sales up 24 per cent. “Recent launches of major stevia-containing carbonated soft drinks (CSDs) suggest PC sales are on track to reach $0.5bn on a 5-year view,” analyst Sophie Jourdier added. “After the 2014 refinancing and $44m placing PC has sufficient funds for the next stage of investment.” The broker left its target price unchanged at 650 pence a share. Separately, Numis upgraded its recommendation to ‘buy’ from ‘add’ (target left unchanged at 700 pence) on the back of yesterday’s first half update. The broker said: “A solid update, although it is early days as sales are very H2 loaded (65.5% arose in H2 last FY). “It was almost certainly the case though that the launch of CocaCola Life etc. had relatively limited impact on H1 sales so the benefits of this have yet to be reflected in the P&L.” - See more at: http://www.stockmarketwire.com/article/4953701/PureCircle-upgraded-by-Liberum.html#.dpuf
5 Jan '15
Slim chance you'll read this but if you do, good luck tonight!
5 Jan '15
Brokers raise Purecircle to 'buy'
Purecircle said its earnings in the July-to-December period, the first half of its financial year, would come in at least 50% higher than those a year before. And it signalled further improvement ahead, saying that the "full net profit benefit" of its "geared business model" – PureCircle has been operating at a relatively low level of capacity and high level of fixed costs, meaning that any rise in revenues achieves a large rise in margins and profits – will only become evident in the current, January-to-June half. "With accelerating roll-outs of food and beverage products using PureCircle's stevia solutions," particularly in soft drinks, "the company is confident of continued sales growth and with it improvements in profitability," said Magomet Malsagov, the group's chief executive. "We are generating revenues from a wide range of natural sweetener and flavour products and from a wide range of customers." "There was growth in sales across all our global sales regions and in all of our ingredients," the group said, highlighting the launch of Coca-Cola Life in the US, Mexico, UK, France and Sweden, and Pepsi True in the US. The statement was well-received by broker Mirabaud, which raised to "buy" from "neutral" its rating on PureCircle shares, albeit keeping its price target for the stock unchanged at 630p. "The market for high purity stevia is evolving rapidly, with main brand cola line extensions in the US and other important markets from Coca-Cola, though Coca-Cola Life, and Pepsico, through Pepsi Next, Pepsi True - and the reformulation of carbonated soft drinks such as Sprite and Fanta in selected geographies," Mirabaud said. "And that is just in carbonated soft drinks. Stevia has already penetrated the non-carbonated beverage and food sectors, and customer product innovation is very active across all categories." Numis raised to "buy" from "add" its rating on the shares, with analyst Charles Pick terming PureCircle's statement "solid" and highlighting that the benefit of Coca-Cola Life roll-outs "have yet to be reflected" in profits.
30 Dec '14
Purecircle New Launch Targets Diary
Following successful global launches of Coke Life and Heinz Ketchup reduced sugar products among many other stevia formulated products over the last 12 months, Purecircle announces a drive to target category specific markets such as diary. Born from PureCircle's highly successful Stevia 3.0™ platform, Sigma-D is the latest PureCircle stevia product to be launched by the leading global producer and marketer of high-quality stevia products. Sigma-D is targeted specifically at successful sugar reduction within the dairy category, performing at parity to sugar on key attributes while providing superior taste performance. Stevia adoption rates have been on the rise in recent years, and many manufacturers are now realizing the opportunity to offer mid-calorie products to their consumers with natural origin sweetness. Sigma-D is a response to this continuing trend and designed to unlock the dairy category, which has traditionally presented more complex challenges for formulators looking to reduce sugar while maintaining texture, indulgence and mouth feel. The new, high purity product provides a combination of steviol glycosides to optimize taste and has been developed through PureCircle's well-established experimental design and predictive modelling capabilities. "PureCircle's highly successful Stevia 3.0™ approach is leading the industry and the latest developments have led to Matrix Solutions that can bring category specific benefits," said John Martin, PureCircle's Global Director of Technical Development and Innovation. "What works in a carbonated soft drink is not necessarily going to be the right solution for an acidified or sweet dairy product. By understanding the sensory contribution of the different glycosides and how they interact in different product matrixes we can help select the best solution for the formulation goal and the result is continued innovation within our proprietary portfolio of high purity stevia sweeteners." Sigma-D will be the first category specific launch from the PureCircle innovation pipeline.
9 Jul '14
RE: Share Prohets Article on Pure
Well its 4 monthsish not at 700p yet and it hasn't crashed either, Shareprophets are again tipping this as a short
11 Jun '14
Coca Cola Life UK Launch September
Financial Times: Coca-Cola aims to battle falling fizzy drinks sales in mature markets with a naturally sweetened soda that will have its European launch in the UK, the September rollout comes amid intensifying efforts by the British government and public health officials to tackle the increasing problem of obesity.
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