Shares of Archer-Daniels-Midland (NYSE:ADM) are in focus today after the human and animal nutrition solutions provider agreed to acquire premium flavor and functional ingredient systems provider FDL.
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Based in the U.K., FDL operates three production facilities and is anticipated to generate $120 million in sales this year. FDL boasts over 10,000 proprietary flavor formulations and has a strong presence in the European food service market. This M & A move is expected to expand ADM’s global flavors capabilities, helping the company broaden its reach in key channels.
ADM’s acquisition of FDL comes fresh on the heels of its agreement to acquire Revela Foods yesterday. Revela, a developer of dairy flavor ingredients and solutions, is expected to generate $240 million in sales in 2023. This deal is anticipated to help ADM bolster its global flavors portfolio in the dairy flavors segment.
What is the Forecast for ADM Stock?
Overall, the Street has a Moderate Buy consensus rating on Archer-Daniels-Midland Company. Following a nearly 22% decline in its share price over the past year, the average ADM price target of $92.13 points to a substantial 27.4% potential upside in the stock.
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