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Investing.com - BofA Securities lowered its price target on International Flavors & Fragrances (NYSE:IFF) to $84.00 from $92.00 on Friday, while maintaining a Buy rating on the stock.
The price target reduction comes amid a slowdown in projected organic growth and margin pressures for the flavor and fragrance company, according to BofA Securities.
The firm noted that soft consumer demand is keeping top-line growth muted, with weakness becoming more pronounced. Additionally, IFF’s Fragrance Ingredients business faces increasing competition while continued growth investments are creating margin pressure.
Despite these challenges, BofA Securities views IFF as well-positioned to expand revenues and earnings in the coming years as it increases spending. The firm considers the current valuation attractive at approximately 11x EV/EBITDA and 15x P/E based on 2025 estimates.
BofA Securities also highlighted IFF’s ongoing transformation, noting that the company has sold its crush business, placed Food Ingredients under formal review, and reinstated share repurchases.
In other recent news, International Flavors & Fragrances Inc. (IFF) reported strong financial results for the second quarter of 2025. The company exceeded expectations with earnings per share of $1.15, surpassing the forecasted $1.12. Revenue also outperformed predictions, reaching $2.76 billion compared to the anticipated $2.7 billion. Despite these positive earnings, Wells Fargo (NYSE:WFC) adjusted its price target for IFF, lowering it from $90.00 to $85.00. The firm maintained an Overweight rating on the stock, highlighting challenges in the Fragrance Ingredients segment due to competition from low-cost providers. This pressure in the fragrance sector offset growth in the specialty ingredients area during the quarter. These developments present a mixed outlook for IFF, with strong financial performance contrasted by sector-specific challenges.
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