Wells Fargo lowers International Flavors & Fragrances stock price target

Published 07/08/2025, 11:40
Wells Fargo lowers International Flavors & Fragrances stock price target

Investing.com - Wells Fargo (NYSE:WFC) lowered its price target on International Flavors & Fragrances (NYSE:IFF) to $85.00 from $90.00 on Thursday, while maintaining an Overweight rating on the stock.

The firm cited pressure in the company’s Fragrance Ingredients segment due to headwinds in commodities from low-cost competition, which offset growth in specialty ingredients during the second quarter of 2025.

Despite these challenges, Wells Fargo noted that IFF’s EBITDA margins reached approximately 15% in Q2 2025, representing a 200 basis point improvement year-over-year.

The company is responding to competitive pressures by investing in new molecule development to increase its focus on specialty ingredients and reduce its exposure to commodities, according to Wells Fargo’s analysis.

The new $85 price target is based on 13 times Wells Fargo’s 2026 EBITDA estimate of $2.1 billion, which falls below the low end of IFF’s historical trading range of 14-19 times EBITDA.

In other recent news, International Flavors & Fragrances Inc. (IFF) reported strong financial results for the second quarter of 2025. The company’s earnings per share (EPS) came in at $1.15, surpassing the forecasted $1.12. Revenue also exceeded expectations, reaching $2.76 billion compared to the anticipated $2.7 billion. These results highlight IFF’s robust performance during the period. The positive earnings and revenue figures were noted by investors and analysts alike. There were no reported mergers or acquisitions involving IFF in the recent updates. Additionally, there were no new analyst upgrades or downgrades reported for the company. This information reflects the latest developments surrounding IFF.

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