KeyBanc Upgrades International Flavors & Fragrances (IFF) to Buy

May 7, 2009 7:42 AM EDT

KeyBanc upgrades International Flavors & Fragrances (NYSE: IFF) from Hold to Buy.

KeyBanc analyst says, "Based on recent due diligence, confidence that our 2009 EPS outlook remains
intact, comfort that the Flavors segment will buck the trend and post positive growth in difficult times, and our belief that Fine Fragrances will bottom soon, we are upgrading IFF to BUY from HOLD. We are establishing a $39 price target, which is based on a 10.0x multiple of our 2009 EV/EBITDA outlook. With the stock currently trading at an 8.3x EV/EBITDA multiple, below its seven-year historical average low and high range of 9.0x to 11.7x, we see good upside potential over the next 12 months. We note that IFF has lagged the broader market, our specialty chemical coverage universe and its consumer products customers base since hitting lows in March, despite the Company's ability to post better results than most in a challenging 2009."

International Flavors & Fragrances Inc. (IFF) is a creator and manufacturer of flavor and fragrance products used by other manufacturers to impart or improve flavor or fragrance in a variety of consumer products. Fragrance products are sold principally to manufacturers of perfumes, cosmetics, personal care products, hair care products, deodorants, soaps, detergents, fabric care and air care products.

To see more analyst ratings on IFF Click Here.

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