International Flavors & Fragrances (IFF) PT Lowered to $84 at BofA Securities

BofA Securities analyst Matthew DeYoe lowered the price target on International Flavors & Fragrances (NYSE: IFF) to $84.00 (from $92.00) while maintaining a Buy rating.

The analyst comments "We reiterate our Buy on IFF with a reduced PO of $84 (from $92) despite a slowdown in projected organic growth and some margins pressures. We already expected the soft consumer demand to keep top-line growth muted, but it appears the weakness is now becoming more pronounced. On top of this, IFF’s more commoditized Fragrance Ingredients business is facing increasing competition while the company’s continued growth investment are resulting in margin pressure. However, we continue to view IFF as well-positioned to expand revenues/earnings in the next few years as it ramps up spending; valuation is attractive at just ~11x EV/EBITDA and ~15x P/E on our ’25 estimates; and the transformation continues with the crush business sold, Food Ingredients under formal review, and the reinstatement of share repurchases."

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