IFF price target raised to $96 from $89 at Morgan Stanley

Morgan Stanley raised the firm’s price target on IFF to $96 from $89 and keeps an Overweight rating on the shares. The firm’s adjusted EBITDA and EPS estimates for FY24 and FY25 are 5% and 18% above consensus, respectively, given its view that the market underestimates the unwind of destocking, continued rebound in various ingredient categories and contribution from self-help, the analyst tells investors. A lower need for refinancing could offer an additional 6%, 6% and 12% boost to respective FY24, FY25 and FY26 EPS estimates, the analyst added.