Darling Ingredients (DAR) PT Lowered to $57 at BMO Capital, 'Risk/Reward Remains Enticing'
BMO Capital analyst Andrew Strelzik lowered the price target on Darling Ingredients (NYSE: DAR) to $57.00 (from $60.00) while maintaining a Outperform rating.
The analyst comments "DAR’s 4Q23 EBITDA of $351 million beat consensus of $342 million reflecting stronger core ingredient profits and lower Corporate expenses, partially offset by weaker DGD margins. DAR removed 2024 EBITDA guidance ($1.7-$1.8 billion) and will update alongside 1Q24 results as visibility improves—a surprising move that likely weighed on the shares. We lower estimates, reduce our target to $57, and expect the shares to be limited in the near term. However, we reiterate Outperform as we see attractive risk/ reward with 2024 EBITDA likely north of $1.5 billion and a stronger earnings outlook beginning in 2025."