uploads/2017/08/Part-3-recommendations-2-1.png

Wall Street’s Views on International Flavors and Fragrances

By

Updated

Analysts’ consensus

Sixteen analysts are tracking International Flavors and Fragrances’ stock (IFF) actively. Among them, 31% have recommended a “buy,” 62% have recommended a “hold,” and 7% have recommended a “sell.”

Before 2Q17 earnings, analysts’ consensus indicated a 12-month target price at $138.85. Now, after 2Q17 earnings, analysts’ consensus indicates IFF’s 12-month target price at $140.62, implying a potential return of 2.8% from the closing price of $136.85 as of August 10, 2017.

Article continues below advertisement

Why many analysts’ are suggesting “hold”?

IFF’s strong 2Q17 earnings beat analysts’ estimates, and the continued growth of sales revenue suggests that the company’s long-term growth is intact. Although IFF missed analysts’ revenue expectations marginally in 2Q16, its vision to achieve $500 million of sales through acquisitions is expected to drive future growth. All these factors could have influenced analysts recommending a “hold” on the stock.

Individual brokerage firms’ recommendations

  • Deutsche Bank (DB) recommends IFF with a target price of $139, which implies a potential return of 1.6% from its August 10, 2017, closing price of $136.85.
  • Raymond James (RJF) rated IFF as “Market Perform.” However, it didn’t provide any target for the stock.
  • Berenberg has recommended a target price of $155 for IFF, implying a potential return of 13.25% over the closing price of $136.85 as of August 10, 2017.

The ProShares Ultra Basic Materials (UYM) has invested 1.20% of its portfolio in IFF.

Advertisement

More From Market Realist