Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com - Baird downgraded Darling Ingredients (NYSE:DAR) from Outperform to Neutral and lowered its price target to $36.00 from $40.00 following the company’s second-quarter results. The stock, currently trading at $35.19, appears undervalued according to InvestingPro analysis, despite showing a -11.09% return over the past year.
The research firm cited Darling Ingredients’ quarterly performance, which fell short of both Baird’s expectations and consensus estimates among analysts tracking the stock.
Darling Ingredients also reduced its full-year 2025 outlook, attributing the adjustment to uncertainty surrounding small refiner exemptions and weakness in the Renewable Identification Number (RIN) market for renewable fuels.
Baird acknowledged that consensus estimates for the company have already been reduced and that market uncertainty is likely at least partially reflected in the current stock price.
The firm explained its rating change by noting a lack of confidence in the visibility of both fundamentals and policy affecting Darling Ingredients’ business moving forward.
In other recent news, Darling Ingredients reported its financial results for the second quarter of 2025, which did not meet analyst expectations. The company’s earnings per share were reported at $0.08, significantly lower than the projected $0.30. Revenue also fell short, reaching $1.19 billion compared to the anticipated $1.49 billion. In light of these developments, Raymond (NSE:RYMD) James has reiterated its Strong Buy rating on Darling Ingredients, maintaining a price target of $60.00. The firm emphasizes the company’s long-term advantages in sustainable fuels, particularly through its Diamond Green Diesel joint venture. This venture continues to hold a first-mover advantage in the renewable diesel and sustainable aviation fuel markets. Raymond James points out the strategic integration value provided by Darling’s legacy Feed and Food business lines. These recent developments highlight ongoing challenges and strategic strengths for Darling Ingredients.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.