IFF's Focus On Health And Environment Set To Drive Stock Momentum, Says Analyst

Zinger Key Points
  • Oppenheimer analyst initiated coverage on International Flavors & Fragrances with an Outperform rating and a price target of $116.
  • IFF's portfolio rationalization aims to improve return on invested capital and strengthen the balance sheet, positioning it for growth.

Oppenheimer & Co. Inc. analyst Kristen Owen initiated coverage on International Flavors & Fragrances Inc. IFF with an Outperform rating and a price target of $116.

The analyst says that IFF aligns with their focus on meaningful molecules, reflecting consumers’ shifting trend toward health and environmental consciousness.

There’s potential for a significant shift in the company’s shareholder base as its portfolio rationalization focuses on key categories, driving improved return on invested capital (ROIC) and strengthening the balance sheet, writes that analyst.

The analyst says that as IFF progresses into the third phase of its transformation, the stock has seen initial positive momentum and appears poised for further growth with ongoing execution and balance sheet achievements.

Owen says that IFF has implemented decisive measures to navigate the recent industry downturn and appears well-positioned for further growth with ongoing execution and achievement of balance sheet milestones.

The analyst estimates adjusted EPS of $3.94 in FY24, $4.28 in FY25, and $4.61 in FY26.

Investors can gain exposure to the stock via SHL Telemedicine Ltd VanEck Morningstar Wide Moat Value ETF MVAL and IShares Emergent Food And AgTech Multisector ETF IVEG.

Price Action: IFF shares are up 0.07% at $97.97 at the last check Friday.

Also Read: International Flavors & Fragrances Sheds Pharma Solutions Unit For Up To $2.85B, Refocusing On Core Growth

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image from Shutterstock

Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: Analyst ColorEquitiesLarge CapNewsPrice TargetInitiationAnalyst RatingsTrading IdeasAI GeneratedBriefsExpert IdeasStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!