Time to stop the dancing! Double upgrade!
International Flavors & Fragrances upgraded at J.P. Morgan
May 08, 2024 9:45 AM ET
International Flavors & Fragrances Inc. (IFF) Stock
International Flavors & Fragrances (NYSE:
IFF) on Wednesday was upgraded to
Overweight from a previous investment rating of
Neutral by analysts at financial-services firm J.P. Morgan. They said the chemical maker is poised for gains by beating profit targets.
Shares ofIFF (
IFF) were little changed as regular trading began in New York.
“IFF (
IFF) indicated that it should earn near the top end of its earnings guide range for 2024 after reporting its strong start to the year,” Jeffrey Zekauskas, analyst at J.P. Morgan, said in a May 8 reported. “
It may be the case that its guide proves conservative given how much lower the company needs to earn relative to its first-quarter 2024 result to reach its annual guide.”
IFF (
IFF) reported first-quarter earnings before interest, taxes, depreciation and amortization of $578 million, which was 17% higher than the average estimate among Wall Street analysts.
Declining costs of raw materials helped to improve profitability.
“The coatings companies and the cleaning chemical companies have benefited as raw material costs have moved lower from the heights of 2022 and 2023,” according to J.P. Morgan. “It may be that flavor and fragrance companies are next.”
The bank raised its price target on IFF (
IFF)
to $100 a share from $75 a share previously, based on an estimated enterprise value that’s 15.5 times ebitda for 2025.
“Our price target reflects some discount to other good-quality specialty chemical companies with defensive business characteristics reflecting IFF’s (
IFF) slower rate of sales and ebitda growth,” according to J.P. Morgan.
/////////////////////////
To be fair they had a PT of $75 and the stk is I think $95.//
So maybe not the greatest of upgrades but it is two notches and gives us some valuable incite.
I'm going to try and be cute and gett his closer to $90 in the upcoming days////////////