On Friday, International Flavors & Fragrances Inc. (NYSE:IFF) experienced a change in stock rating as Argus lowered its recommendation from Buy to Hold. The alteration in stance comes as the company, known for developing and manufacturing commercial flavors and fragrances, faces challenges that have affected its growth trajectory.
According to the firm, International Flavors & Fragrances has been dealing with several headwinds that have influenced the decision to adjust the rating. These challenges include higher costs for raw materials and transportation, supply-chain disruptions, volume slowdowns, and geopolitical developments. These factors have collectively dampened the company's growth prospects.
The company has recently welcomed a new CEO who has made the decision to cut the dividend. This move, along with the aforementioned difficulties, has contributed to a bearish trend for the company's shares. The stock has been exhibiting a pattern of lower highs and lower lows since August 2021.
Argus has indicated a potential reconsideration of the stock's rating in the future. The firm might consider reinstating a Buy rating if International Flavors & Fragrances demonstrates a significant improvement in earnings growth, transitioning from low single-digit to high single-digit growth, or if the stock price retreats to a technical support level around $65.
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