Analyst Andrew Strelzik of BMO Capital maintained a Buy rating on Darling Ingredients, retaining the price target of $45.00.
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Andrew Strelzik has given his Buy rating due to a combination of factors that highlight Darling Ingredients’ potential for future growth. The company’s third-quarter results exceeded expectations, particularly in the Feed segment, which saw a significant year-over-year increase. This performance was bolstered by higher fat prices and improved international operations, showcasing the strength of Darling’s core business model.
Moreover, the change in guidance methodology reduces risk and places emphasis on the more predictable aspects of the business, despite ongoing uncertainties in the biofuels sector. Strelzik anticipates that once biofuel policies are finalized, Darling Ingredients will benefit from a more favorable operating environment, potentially achieving a $1.4 billion EBITDA run-rate by 2026. The company’s vertically integrated model and strategic initiatives, such as acquisitions and capacity expansions, further support the positive outlook.
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, Darden Restaurants, and McDonald’s.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $49.00 price target.