BofA raises IFF stock price target to $92, maintains buy rating

On Wednesday, BofA Securities analyst Matthew DeYoe increased the price target for International Flavors & Fragrances (NYSE:IFF) shares to $92 from the previous $85, while reiterating a Buy rating on the stock. The adjustment follows International Flavors & Fragrances’ strong performance in the first quarter, which saw organic growth of 3%, meeting BofA Securities’ forecasts.

The company’s latest earnings surpassed expectations, prompting the analyst to maintain a positive outlook. International Flavors & Fragrances has confirmed its full-year organic growth projection of 1-4%, a notable achievement given the current economic headwinds, including a slowdown in the US consumer sector. Additionally, the firm expects organic EBITDA growth of 5-10%, despite facing challenges from tariffs.

The optimism from BofA Securities is further bolstered by the performance of European ingredient peers, which have demonstrated a sustained ability to outgrow their customers. This trend supports the analyst’s confidence in International Flavors & Fragrances’ market position.

In justifying the raised price target, DeYoe cited an increase in the estimated 2025 enterprise value to EBITDA (EV/EBITDA) and price to earnings (P/E) multiples to 15.4x and 21.7x, respectively. These figures are aligned with the 10-year averages and mark an uptick from the previously assigned multiples of 13.8x for EV/EBITDA and 19.4x for P/E.

Investors may find reassurance in the company’s robust quarter and the reaffirmed growth outlook, as International Flavors & Fragrances continues to navigate the complex global market landscape. The stock’s new price target reflects the analyst’s revised expectations and the company’s consistent performance amidst broader market challenges.

In other recent news, International Flavors & Fragrances Inc. (IFF) reported its first-quarter 2025 earnings, which showed a mixed performance. The company exceeded earnings per share (EPS) expectations with a reported EPS of $1.20, surpassing the forecast of $1.13. However, revenue came in slightly below expectations at $2.8 billion, compared to the anticipated $2.83 billion. IFF also completed the sale of its nitrocellulose division to Czechoslovak Group, a strategic move aimed at reducing debt and focusing on core areas. Barclays (LON:BARC) analyst Lauren Lieberman upgraded IFF’s stock rating from Equalweight to Overweight, raising the price target to $84, citing the company’s reduced financial risk and reliable financial guidance. Oppenheimer maintained its Outperform rating for IFF, with a price target of $89, highlighting the company’s recovery and strategic initiatives. These developments reflect IFF’s ongoing efforts to enhance its market position and financial stability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.