Barclays lifts IFF stock rating, raises target to $84

On Thursday, Barclays (LON:BARC) analyst Lauren Lieberman upgraded International Flavors & Fragrances (NYSE:IFF) stock rating from Equalweight to Overweight and increased the price target to $84.00, up from $76.00. The revision reflects the firm’s positive outlook on the company’s straightforward business approach and reduced financial risk.

Lieberman highlighted IFF’s strategic moves, such as the early completion of its Pharma divestiture and reducing its leverage ratio to below 3 times. These steps, according to the analyst, are in line with the company’s previously stated goals and contribute to a more secure financial profile. The company’s financial strength is evident in its $11.48 billion revenue and healthy current ratio of 1.84.

The Barclays analyst also pointed out that International Flavors & Fragrances has made its 2025 financial guidance more reliable. The company’s projections for revenue and earnings are now seen as comfortably attainable, which may reassure investors.

The upgraded stock rating and price target come as IFF shares are perceived to be undervalued. Trading at only 12 times the projected 2025 enterprise value to EBITDA (EV/EBITDA), and at a 15% discount to its Specialty Ingredients peers, Barclays sees this valuation gap as an investment opportunity.

Barclays’ positive stance on International Flavors & Fragrances is based on the belief that the company offers a simple investment narrative with limited downside risk—a combination that has become increasingly rare in the consumer staples sector, according to the analyst’s remarks.

In other recent news, International Flavors & Fragrances Inc. (IFF) reported its first-quarter 2025 earnings, showcasing a mixed financial performance. The company surpassed earnings per share (EPS) estimates, reporting $1.20 against the forecasted $1.13. However, revenue came in slightly below expectations, at $2.8 billion compared to the anticipated $2.83 billion. IFF has successfully completed the divestiture of its Pharma Solutions segment, which is expected to enhance focus on its core segments. Despite macroeconomic challenges, the company is maintaining its full-year sales guidance of $10.6-$10.9 billion, projecting 1-4% currency-neutral growth. Analysts from BNP Paribas (OTC:BNPQY) and UBS have raised concerns about potential impacts from tariffs and macroeconomic pressures, with IFF estimating a $100 million exposure to tariffs. Furthermore, IFF is committed to reinvesting in its core business segments, with an emphasis on innovation and customer focus as highlighted by CEO Eric Fehrwald. The company also announced a joint venture with Chimera, focusing on scaling enzymatic biomaterials, with plans to construct a new plant in Finland.

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