Ingredion (INGR) Pricing Power and Volume Recovery Look Muted, Credit Suisse Reiterates Neutral

Credit Suisse analyst Robert Moskow reiterated a Neutral rating and $77.00 price target on Ingredion (NYSE: INGR) after the company reported 3Q EPS of $1.77 beating expectations of $1.44 by a wide margin. However, the cautious tone regarding the pricing environment for North American sweeteners in 2021 and the pace of demand re-acceleration post-COVID kept the stock under pressure (-22% YTD).

The analyst stated "We were surprised to hear management describe a “tempered” pricing environment for North American sweeteners heading into 2021, pointing to excess industry capacity during the pandemic and a 15% increase in corn costs due to tighter supplies (corn exports to China have accelerated). We were also surprised to see a -3% impact to North American mix from the shift to larger customers and big brands during the pandemic, but management said that specialty sales to medium and small customer is now improving".

For an analyst ratings summary and ratings history on Ingredion click here. For more ratings news on Ingredion click here.

Shares of Ingredion closed at $72.13 yesterday.

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