Darling Ingredients (DAR – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Jason Gabelman from TD Cowen maintained a Hold rating on the stock and has a $43.00 price target.
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Jason Gabelman has given his Hold rating due to a combination of factors surrounding Darling Ingredients’ financial outlook and market conditions. The company recently adjusted its 2025 EBITDA guidance downward from $1.5 billion to approximately $1.3 billion, aligning with TD Cowen’s forecast and reflecting a more realistic perspective. This cautious guidance approach may boost investor confidence but also suggests limited immediate upside potential unless renewable diesel industry margins improve and Low Carbon Fuel Standard (LCFS) prices appreciate in the latter half of 2025.
Additionally, Darling Ingredients is currently trading at a multiple that is slightly below its historical average, indicating a cautious market sentiment. While the company’s recent conservative guidance could lead to a more accurate valuation, there remains uncertainty around future market improvements and geopolitical factors like the Russia-Ukraine conflict, which might impact feed prices. Thus, the Hold rating reflects a balanced view of potential risks and opportunities in the near term.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DAR in relation to earlier this year.