International Flavors & Fragrances Likely Offers Limited Upside, BofA Says

MT Newswires Live11-06 23:54

International Flavors & Fragrances (IFF) is faced with a shifting risk/reward profile after a strong Q3 performance, BofA Securities said in a Friday note.

The note said IFF reported Q3 adjusted EBITDA of $403 million, exceeding BofA's above-consensus expectations, as it posted a set of impressive quarters against conservative guidance.

While organic growth in the Taste portfolio may have duration, the report pointed to softness in other businesses.

This comes at an inopportune time, as energy and raw material inflation are starting to flow through the income statement, the report said, projecting muted operating leverage.

"With shares having rallied materially...and the stock out of catalysts, we find upside difficult from here," the note said.

BofA downgraded the stock to underperform from buy and lowered its price target to $91 from $95.

Price: 83.93, Change: -2.44, Percent Change: -2.82

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