How Analysts View International Flavors and Fragrances



Analyst consensus on International Flavors and Fragrances

In the past few months, the number of analysts tracking International Flavors and Fragrances (IFF) has remained more or less steady. At present, 15 analysts are actively tracking IFF. Among them, 40% of the analysts have recommended the stock as a “buy,” 53% of the analysts have recommended the stock as a “hold,” while 7% of analysts have given a “sell” recommendation.

The consensus target price of $154.85 for International Flavors and Fragrances represents a return potential of 12.2% over the closing price on February 8, 2018.

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IFF, which posted strong 3Q17 earnings, expects the trend to continue. We may see more acquisitions, as the company is continuously working towards its vision for 2020 of generating $500 million to $1 billion in acquisition revenues. At the same time, IFF has also authorized a $300 million share repurchase program, which could add value to the remaining shareholders. These positive developments indicate that the company’s growth strategy is intact. Thus, more analysts are recommending the stock as a “buy” or “hold.”

Individual analyst recommendations and target prices

  • Berenberg Bank rated IFF as a “buy” with a target price of $160, implying a return potential of 15.9% over the closing price as of February 8, 2018.
  • KeyCorp rated IFF as “overweight” and has recommended a target price of $156.0, which implies a return potential of 13.0% over the closing price on February 8, 2018.
  • Evercore rated IFF as “outperform,” but did not provide a target price.

Investors can indirectly hold IFF by investing in the iShares U.S. Basic Materials ETF (IYM), which invests 1.5% of its portfolio in IFF. The fund also provides exposure to Monsanto (MON), Praxair (PX), and LyondellBasell (LYB), which have weights of 7.3%, 5.9%, and 4.9%, respectively, as of February 8, 2018.


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