TD Cowen analyst Jason Gabelman maintained a Hold rating on Darling Ingredients today and set a price target of $34.00.
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Jason Gabelman has given his Hold rating due to a combination of factors influencing Darling Ingredients’ financial outlook. The company experienced an earnings beat, which was a positive sign for investors, but this was tempered by an increase in debt that is expected to be mitigated in the fourth quarter through tax credit proceeds. Additionally, while there is optimism surrounding the potential for higher RIN prices following a final RVO decision in December, there are concerns about the impact of changes in 2026 related to the 45Z adjustments.
Moreover, Darling Ingredients has adjusted its guidance, eliminating the DGD guide and setting a new core EBITDA target for FY25. This adjustment indicates a more cautious outlook, with the company’s estimates slightly below consensus figures. The market may remain hesitant until there is a sustained improvement in industry margins, as Darling Ingredients is currently trading at a multiple higher than its historical average. These mixed signals contribute to the Hold rating, reflecting a balanced view of potential opportunities and challenges ahead.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $33.00 price target.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DAR in relation to earlier this year.