Darling Ingredients, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Strelzik from BMO Capital maintained a Buy rating on the stock and has a $45.00 price target.
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Andrew Strelzik has given his Buy rating due to a combination of factors that highlight the potential for Darling Ingredients to achieve significant growth in the coming years. Despite the current challenges, such as slow policy rollouts and pressures on RD margins, Strelzik sees a promising future for the company as biofuels policies are expected to yield positive outcomes. The anticipated benefits from these policies, including the 45Z tax credit, are starting to manifest, which should enhance market liquidity and functionality.
Furthermore, Strelzik remains optimistic about Darling Ingredients’ long-term prospects, particularly as the operating environment is expected to improve significantly by 2026. The company’s vertically integrated model and potential for growth through strategic initiatives, such as SAF and LCFS policy advancements, acquisitions, and capacity expansions, are key drivers of this positive outlook. Despite the current headwinds, Strelzik believes that Darling Ingredients is on track to achieve a $1.4 billion EBITDA run rate by 2026, reinforcing his Buy recommendation.
According to TipRanks, Strelzik is a 4-star analyst with an average return of 4.2% and a 54.40% success rate. Strelzik covers the Consumer Cyclical sector, focusing on stocks such as Domino’s Pizza, McDonald’s, and Darden Restaurants.
In another report released on October 8, Bank of America Securities also initiated coverage with a Buy rating on the stock with a $45.00 price target.