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What Analysts Think about IFF ahead of 1Q17 Earnings

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Analysts’ recommendations for International Flavors and Fragrances

As of May 2, 2017, 14 brokerage firms were actively tracking International Flavors and Fragrances (IFF) stock. About 43% of these analysts have recommended a “buy” for the stock, while 50% of the analysts have recommended a “hold,” and the remaining 7% of the brokerage firms have recommended a “sell” for the stock.

The analyst consensus indicates a 12-month target price of $131.90 for International Flavors and Fragrances. However, IFF stock closed 4.8% above the consensus recommended target price.

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Why are analysts recommending a “hold” for IFF?

IFF posted better-than-expected results in 4Q16 and discussed its continued strategy to achieve its 2020 vision of improving sales by $500 million to $1 billion by way of acquisitions, which could have influenced analysts to recommend a “hold” on the stock.

Recommendations and targets

Recommended target prices for International Flavors and Fragrances from some well-known brokerage firms are as follows:

  • JP Morgan (JPM) rated IFF as a “neutral” with a target price of $123, which implies a 12-month return of -11.0% based on the closing price of $138.22 on May 2, 2017.
  • UBS (UBS) rated IFF as a “buy” with a target price of $138, which implies a 12-month return of -0.2% based on the closing price of $138.22 as of May 2, 2017.
  • Barclays (BCS) rated IFF as “underweight” with a target price of $112, which implies a 12-month return of -19.0% based on the closing price of $138.22 on May 2, 2017.

Investors can indirectly hold International Flavors and Fragrances by investing in the ProShares Ultra Basic Materials ETF (UYM), which invests 1.3% of its holdings in IFF as of May 2, 2017.

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