IFF downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded IFF to Equal Weight from Overweight with a price target of $75, down from $112. The analyst says that while de-stocking is coming to an end, a broad-based consumer demand rebound is yet to emerge. With the mid-term ingredients outlook “not without blemishes,” the analyst prefers exposure to players with “idiosyncratic, multi-year volume growth drivers.” After three fiscal 2023 guidance resets year-to-date, the firm now sees risk to IFF’s mid-term strategic targets. The company may need to use its cash balances or obtain incremental leverage to service the current run-rate dividend outflow and debt maturities, the analyst tells investors in a research note.