In a report released yesterday, Michael Sison from Wells Fargo maintained a Buy rating on International Flavors & Fragrances (IFF – Research Report), with a price target of $105.00.
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Michael Sison has given his Buy rating due to a combination of factors that suggest a positive outlook for International Flavors & Fragrances (IFF). Despite a reduction in the 2025 financial outlook mainly due to foreign exchange headwinds and weaker demand, Sison maintains an overweight rating, citing positive volume growth and an improved balance sheet following divestitures. The anticipated volume growth across all of IFF’s businesses, particularly in Health & Biosciences, Scent, and Taste, supports this optimistic stance.
Additionally, IFF’s ability to drive productivity gains and maintain supportive pricing strategies are expected to offset elevated raw material costs. Although foreign exchange trends pose a challenge, impacting both revenue and EBITDA, the risk/reward scenario remains attractive. The valuation is based on a price target of $105, reflecting the high end of IFF’s historical trading range, with potential upside if FX headwinds are less severe or productivity measures exceed expectations.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $100.00 price target.