LONDON (ShareCast) - This morning’s trading update from Tate & Lyle failed to change Panmure Gordon’s view on the stock, which it rates as a sell.

The broker noted that the company indicated that first quarter profits are likely to be little changed from the corresponding period of last year, while the tax rate guidance has been lifted from 29% to 31%.

Panmure Gordon said that if energy costs stay at their current levels, Tate & Lyle’s energy costs are likely to be £80m higher in 2010 than they were in 2008.

The broker also had concerns about a potential decline in High-fructose corn syrup capacity utilisation in the US this year.

The broker has a price target of 385p for the stock.

Computer-services company Dimension Data has been raised to “hold” from “sell” by Deutsche Bank.

Yesterday, the group said investors bought almost a quarter of the 136.1m new shares it issued at 44.25p each. The balance was taken up by underwriters Venfin Ltd and Cape Town-based money manager Allan Gray.

Goldman Sachs has initiated coverage on insurer Standard Life and placed the stock straight on its “conviction buy” list, with a price target of 288p.

Goldman Sachs believes the company is the pick of the sector, with the most attractive risk/reward balance.

The broker also has Friends Provident on its conviction buy list, highlighting the scope for tangible book value inflation as the company offloads assets. Goldman maintains its 127p price target for the stock.

Elsewhere in the insurance sector Goldman’s has cut Aviva to “neutral” from “buy”, citing concerns over a possible disruption to its US Equity Indexed Annuity sales. Aviva’s price target has been chopped to 639p from 707p.

The broker maintained its neutral rating on Prudential and cut the stock’s price target to 665p from 741p.

• News Channel