Darling Ingredients stock rating reiterated at Buy by UBS

Published 24/10/2025, 15:22
Darling Ingredients stock rating reiterated at Buy by UBS

Investing.com - UBS has reiterated its Buy rating on Darling Ingredients (NYSE:DAR) with a price target of $58.00, representing a potential 67% upside from the current price of $34.62. According to InvestingPro data, analyst targets range from $34 to $60, with the stock currently showing signs of being undervalued based on Fair Value analysis.

The firm expects Darling’s core ingredients business, excluding the Diamond Green Diesel (DGD) joint venture, to generate EBITDA of $875-900 million in fiscal year 2025. This forecast represents potential growth from the current EBITDA of $814 million over the last twelve months.

UBS noted that uncertainty and delays in obtaining a final Renewable Volume Obligation (RVO) ruling have negatively impacted the U.S. biofuel environment, while export protein demand is showing signs of recovery with slightly firmer pricing trends.

The analysis highlighted that tariff implications affecting China and Asia-Pacific markets have impacted Darling’s poultry protein products, creating headwinds for that segment of the business.

UBS also pointed out operational challenges, including a scheduled turnaround at the DGD 3 facility that reduced renewable diesel and sustainable aviation fuel volumes, while DGD 1 remains idled and will only restart when soybean oil margins become profitable under policy changes.

In other recent news, Darling Ingredients Inc. announced its third-quarter 2025 financial results, revealing an earnings per share (EPS) of $0.12, which fell short of the anticipated $0.25. However, the company surpassed revenue expectations, reporting $1.56 billion compared to the projected $1.51 billion. This revenue beat has contributed to positive sentiment around the company’s future growth prospects. Analysts have noted the revenue performance as a significant factor in the company’s recent developments. Despite the EPS miss, the revenue achievement suggests underlying business strength. The company’s financial results have drawn attention from various market analysts, although no specific upgrades or downgrades were mentioned. Investors are closely watching Darling Ingredients as it navigates the current market landscape. These developments come amid a backdrop of broader industry trends and economic conditions.

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

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