What Are Analysts’ Views on IFF as 2018 Draws to a Close?



Analysts’ consensus

Analysts’ interest in International Flavors & Fragrances (IFF) has waned since the beginning of 2018. At present, 13 analysts are actively tracking the company. Among these analysts, 38% have recommended “buys,” 47% have recommended “holds,” and 15% have recommended “sells” on the stock.

Analysts seem to be widely divided about IFF. Analysts’ views are important to investors, as they help to track a stock’s price movements.

Analysts’ consensus estimate for IFF indicates a target price of $148.94, which implies a potential return of 19.2% over its closing price on December 24. Since its third-quarter earnings results, analysts have maintained their target prices on its stock.

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IFF completed its Frutarom acquisition in October, and it will be contributing to IFF’s bottom and top lines in the fourth quarter. Through this acquisition, IFF expects to see cost synergies of $145 million over a period of three years. However, at the same time, IFF’s debt and number of outstanding shares have increased due to the acquisition. As a result, the majority of analysts have recommended “holds” on the stock.

Individual brokerages’ recommendations

  • Morgan Stanley (MS) has rated IFF as “equal weight” and has given it a target price of $131, which implies a potential return of 4.84% based on its December 24 closing price.
  • Raymond James (RJF) has downgraded IFF to an “underperform” from a “market perform.” However, it hasn’t recommended any target price.
  • JPMorgan Chase (JPM) has raised its target price for IFF to $130 from $124, implying a potential return of 4.0% over its closing price on December 24.

Investors can indirectly hold IFF through the Materials Select Sector SPDR ETF (XLB), which held 2.7% in the stock on December 24.


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