Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Wednesday, Mizuho (NYSE:MFG) Securities adjusted its financial outlook for International Flavors & Fragrances (NYSE:IFF), reducing the stock’s price target to $100 from $105 while retaining an Outperform rating. The firm’s analyst cited a lower-than-anticipated adjusted Operating EBITDA guidance for 2025, with a forecasted midpoint of $2.08 billion compared to the $2.3 billion and $2.2 billion expected by MSUSA and Bloomberg consensus, respectively. InvestingPro analysis indicates the company’s current EBITDA stands at $1.86 billion, with a Financial Health Score rated as ’FAIR’. The stock appears to be trading above its Fair Value based on comprehensive analysis.
The revised guidance from International Flavors & Fragrances includes a 6% EBITDA headwind from foreign exchange rates, which was larger than Mizuho had anticipated. For 2025, the company has guided a 2.5% midpoint in organic growth, with an EBITDA increase of 7.5% on a comparable basis. Additionally, the pending sale of a Pharma ingredient is on track to finalize by June 30, and it has been factored into the full-year estimates and half-year guidance.
International Flavors & Fragrances recently reported a 5% year-over-year increase in adjusted Operating EBITDA for December quarter of 2024, reaching $471 million, which surpassed the $456 million anticipated by MSUSA and consensus. This growth was supported by a 6% rise in organic sales, driven primarily by volume across various segments.
Following the latest financial updates, Mizuho has revised its EBITDA estimates for International Flavors & Fragrances for the years 2025 and 2026 to $2.07 billion and $2.09 billion, down from the previous $2.26 billion and $2.42 billion. Correspondingly, the earnings per share (EPS) estimates have been adjusted to $4.45 and $4.65 for the same years, from the earlier projections of $4.60 and $5.10. Despite the lowered price target, Mizuho continues to see the stock favorably, as reflected in its maintained Outperform rating.
In other recent news, International Flavors & Fragrances Inc. (IFF) delivered a strong fourth-quarter performance, surpassing analyst expectations. The company reported adjusted earnings per share of $0.97, beating the analyst consensus of $0.82, and revenue of $2.8 billion, above the expected $2.69 billion. This represents a 3% YoY increase, with a 6% rise on a comparable currency neutral basis.
However, IFF’s 2025 guidance fell short of estimates, forecasting revenue between $10.6 billion and $10.9 billion, below the consensus estimate of $11.3 billion. The company also plans to divest the Pharma Solutions segment by June 30, 2025, which is included in the guidance.
In terms of segments, the Nourish segment saw comparable currency neutral sales rise 4%, Health & Biosciences grew 6%, Scent increased 7%, and Pharma Solutions jumped 12% in Q4. These recent developments provide insight into the company’s recent performance and future plans.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.