IFF's Leverage to Improve by 2025, Sales Momentum to Boost EBITDA, Projects Analyst
Portfolio Pulse from Lekha Gupta
Stifel analyst Mark S. Astrachan upgraded International Flavors & Fragrances Inc. (NYSE:IFF) to Buy from Hold, raising the price target to $115 from $95. The analyst sees conservative 2024 guidance and projects increased sales and adjusted EBITDA for 2024-2025. IFF's volumes rebounded in Q1 2024, and mid-single-digit volume growth is expected throughout 2024. Leverage is anticipated to decrease to around 3.0x by year-end 2025. IFF stock has gained over 15% in the last 12 months.
July 22, 2024 | 5:20 pm
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POSITIVE IMPACT
Stifel analyst Mark S. Astrachan upgraded IFF to Buy from Hold, raising the price target to $115 from $95. The analyst projects increased sales and adjusted EBITDA for 2024-2025, with volumes rebounding in Q1 2024 and mid-single-digit growth expected throughout 2024. Leverage is anticipated to decrease to around 3.0x by year-end 2025.
The upgrade to Buy and increased price target from a reputable analyst, along with positive projections for sales, EBITDA, and leverage reduction, are likely to boost investor confidence and drive the stock price up in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to IFF through the IShares Emergent Food And AgTech Multisector ETF (NASDAQ:IVEG).
As IFF is a component of IVEG, positive news for IFF could have a beneficial impact on the ETF, though the effect will be diluted compared to direct investment in IFF.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Investors can gain exposure to IFF through the VanEck Morningstar Wide Moat Value ETF (BATS:MVAL).
As IFF is a component of MVAL, positive news for IFF could have a beneficial impact on the ETF, though the effect will be diluted compared to direct investment in IFF.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30