CFO Switch-Up At International Flavors & Fragrances

The CFO departure at International Flavors & Fragrances Inc IFF surprised Deutsche Bank as the outgoing Alison Cornell had been with the company only for a little over a year. The company named Rich O’Leary as EVP/CFO.

The company and Ms. Cornell made the mutual decision to separate. Meanwhile, O’Leary was most recently Interim CFO from November 2014-July 2015 and has been at IFF for almost a decade.

“We don’t expect any significant strategic changes and expect Mr. O’Leary to continue to focus on executing the company’s Vision 2020 goals,” analyst Faiza Alwy wrote in a note.

“Still, management turnover is often disruptive but Mr. O’Leary’s long tenure with the company should make for a relatively smooth transition,” Alwy continued.

IFF has yet to announce its third quarter earnings release date, but the analyst expects organic sales growth of 2.6 percent, 2-year stack of 6.6 percent, (about in line with peer Givaudan) The analyst’s estimate is based on new business won due to proprietary technologies and high growth acquisitions (Ottens/Lucas Meyer).

However, Alwy maintained a Hold rating on the stock, with $137 target on premium valuation relative to historical levels versus. peers and customers.

“Our long-term view on IFF remains unchanged, as the oligopolistic flavors and fragrances industry should benefit from emerging markets growth driven by population growth and middle class development, continued focus on health/wellness which should drive product reformulations, and new technologies in developed markets,” Alwy added.

At time of writing, shares of IFF fell 2.16 percent to $132.55.