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On Wednesday, Stifel analysts reiterated their Buy rating on International Flavors & Fragrances (NYSE:IFF) stock with a steady price target of $105.00. The company’s fourth-quarter results surpassed market expectations, posting sales of $2.8 billion, which was above the consensus estimate of $2.68 billion. The adjusted EBITDA for the quarter also exceeded forecasts, coming in at $477 million against the expected $456 million.
International Flavors & Fragrances provided its first outlook for the year 2025, expecting sales to range between $10.6 billion and $10.9 billion. This projection slightly misses the consensus estimate of $11.17 billion but falls in line with Stifel’s prediction of $10.73 billion. The company’s forecast for adjusted EBITDA stands at $2.0 billion to $2.15 billion for 2025, which again is just shy of the consensus estimate of $2.18 billion but is in agreement with Stifel’s estimate of $2.07 billion.
The guidance provided by IFF also takes into account the expected completion of the previously announced divestiture of its Pharma segment by the middle of the year. Stifel analysts had already anticipated this move, but they believe that the consensus had not fully factored in the divestiture.
The financial community will be monitoring International Flavors & Fragrances as it progresses towards its 2025 targets, with Stifel’s affirmation of a Buy rating indicating confidence in the company’s future performance despite the slight divergence from consensus estimates. The projected divestiture is expected to refine the company’s focus and potentially impact its financial results in the coming years.
In other recent news, International Flavors & Fragrances (IFF) reported fourth-quarter earnings that exceeded analyst expectations, posting an adjusted earnings per share of $0.97, surpassing the consensus estimate of $0.82. The company also reported revenue of $2.8 billion, which was above the anticipated $2.69 billion and marked a 3% year-over-year increase. Despite these positive results, IFF’s guidance for 2025 fell short of analyst estimates, with projected revenue between $10.6 billion and $10.9 billion, below the consensus of $11.3 billion. Analysts at Mizuho (NYSE:MFG) responded by lowering the stock’s price target to $100 from $105, while maintaining an Outperform rating.
The company’s 2025 guidance reflects a 1% to 4% expected growth in comparable currency-neutral sales and a 5% to 10% increase in adjusted operating EBITDA year-over-year. Additionally, IFF plans to divest its Pharma Solutions segment by June 30, 2025, which is included in the guidance. Foreign exchange rates are expected to negatively impact 2025 sales growth by approximately 4% and adjusted operating EBITDA growth by about 6%. In the December quarter of 2024, IFF achieved a 5% year-over-year increase in adjusted operating EBITDA, reaching $471 million, surpassing expectations. The company saw growth across various segments, with the Nourish segment rising 4%, Health & Biosciences up 6%, Scent increasing 7%, and Pharma Solutions jumping 12%.
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