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How Analysts View International Flavors and Fragrances

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Analyst consensus on International Flavors and Fragrances

The number of analysts tracking International Flavors and Fragrances (IFF) has fallen since the beginning of 2018 from 16 to the current 13. Of these analysts, 38% have recommended a “buy” for the stock, 46% have recommended a “hold,” and 16% have recommended a “sell.”

The analysts’ consensus target price is $147.77, which implies a return potential of ~5.5% from the closing price of $140.1 as of May 2, 2018. In the past three months, the consensus target price of IFF has come down from $154.83 to the current target price, indicating that analysts are a little dovish.

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IFF reported strong 4Q17 earnings, which beat analysts’ expectations, and it expects the trend to continue in 1Q18 as well. However, the rising cost of materials and other operating expenses could pose a challenge. It remains to be seen if IFF’s expected top-line growth can absorb these challenges. As a result, analysts are divided in their opinions about the stock. The first quarter could set the tone in regards to what direction the stock could head.

Individual brokerage firms’ recommendations

  • Barclays (BCS) has rated IFF as a “sell” and recommended a target price of $131.00, which suggests a decline of 6.5% from the closing price as of May 2.
  • KeyCorp (KEY) lowered its target price on IFF to $156 from the previous target price of $162.00. The current target price implies a return potential of 11.0% over the closing price as of May 2.
  • Deutsche Bank (DB) cut IFF’s target price to $135 and has a “hold” recommendation, which implies a potential decline of 3.6% from its closing price of $140.1 as of May 2.

Investors can opt for the First Trust Horizon Managed Volatility Domestic ETF (HUSV), which invests 1.9% of its portfolio in IFF as of May 2, 2018.

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