IFF downgraded to Hold from Buy at Stifel

Stifel analyst Mark Astrachan downgraded IFF to Hold from Buy with a price target of $85, down from $123. IFF reported disappointing Q2 results and reduced its 2023 sales and adjusted EBITDA guidance by 7% and 18%, respectively, the analyst tells investors in a research note. The firm says the miss and lowered guidance largely reflects ongoing customer destocking, hurting volumes and resulting in more significant manufacturing absorption costs related to improving inventories. Stifel anticipates IFF shares will trade down meaningfully on the results.