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Investing.com - UBS has lowered its price target on International Flavors & Fragrances (NYSE:IFF) to $79.00 from $83.00 while maintaining a Neutral rating.
The price target reduction follows what UBS described as slightly disappointing quarterly results, with higher organic growth offset by weaker margin performance, particularly in the Taste segment.
Despite the mixed results, UBS noted several positive developments, including reduced leverage following the Pharma divestment, with net debt/EBITDA dropping to approximately 2.5x. The company also announced a $500 million share repurchase authorization, representing about 3% of its market capitalization.
International Flavors & Fragrances has officially launched a strategic review of its Food Ingredients business and announced the divestment of its Soy crush, concentrates, and Lecithin businesses, which represent approximately 7% of the segment’s sales.
UBS maintained its Neutral rating, noting that while the company is making good progress on factors within its control, slowing industry growth and derating among peers remain overhangs on the stock.
In other recent news, International Flavors & Fragrances Inc. (IFF) announced a regular quarterly cash dividend of $0.40 per share, payable on October 10, 2025, to shareholders of record as of September 29, 2025. The company has also made several strategic appointments to its board of directors, including Paul J. Fribourg, Jesus B. Mantas, and Gina Drosos, each bringing extensive experience from various industries. IFF introduced a sustainable fragrance delivery system named ENVIROCAP, aimed at reducing environmental impact while enhancing fabric care products. UBS analyst Joshua Spector maintained a Neutral rating for IFF with a price target of $83.00, citing the company’s recent Pharma divestment that lowered its net debt-to-EBITDA ratio. Spector noted that IFF’s focus will now shift from managing leverage to driving growth. Additionally, IFF has separated its Food Ingredients business from its Taste segment, providing clearer insights into its operations. These developments reflect IFF’s ongoing efforts to innovate and strengthen its market position.
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