Darling Ingredients reinstated with an Outperform at BMO Capital

BMO Capital reinstated coverage of Darling Ingredients with an Outperform rating and $80 price target, which implies 36% potential upside. The company’s Q1 will likely will fall short of consensus estimates, reflecting the breakdown of the natural hedge between Feed segment and Diamond Green Diesel profitability, the analyst tells investors in a research note. However, the firm believes this is reflected in the shares, creating an attractive risk/reward and an opportunity to capitalize on Darling’s "compelling earnings outlook" after Q1. It expects the company’s EBITDA to build to $2B in 2024.