UBS has lowered its rating on the sugar company Tate & Lyle. However the investment bank lifted the group's target price to 530p from 465p.

UBS made the move on valuation grounds, saying Tate& Lyle's stock had increased over 25% in two months,  and, in so doing, moving into the 'over-bought' territory.

"The stock has responded very positively to; better than expected interim results, the clarification of the precise nature of the EU sugar reform package and an expectation that, on the back of high ethanol prices, the outcome of the sweetener contract negotiations in the US will be favourable," UBS said in a research note.