In a report released yesterday, Lisa De Neve from Morgan Stanley maintained a Buy rating on International Flavors & Fragrances (IFF – Research Report), with a price target of $98.00.
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Lisa De Neve’s rating is based on the strong growth potential of International Flavors & Fragrances (IFF), which is expected to outperform the US Consumer Staples sector by more than three times. This is attributed to IFF’s diverse customer and regional base, its focus on innovation, and the regulatory-driven reformulation wave that benefits the company. Additionally, IFF’s financial health is bolstered by the completion of its Pharma Solutions divestment and a debt tender offer, which significantly reduces its net debt to EBITDA ratio and interest burden, thereby supporting a robust earnings growth forecast.
Moreover, the company’s valuation appears attractive, trading at a discount compared to industry leader Givaudan. Despite a slight adjustment in the price target to $98, reflecting updated earnings projections and market conditions, IFF remains an appealing investment opportunity. Investors are advised to monitor factors such as oil prices, foreign exchange volatility, and regulatory changes, which could impact the company’s performance.
In another report released on May 8, Barclays also upgraded the stock to a Buy with a $84.00 price target.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of IFF in relation to earlier this year.