UBS Reiterates Neutral Rating on International Flavors & Fragrances (IFF)

UBS analyst Joshua Spector reiterated a Neutral rating and $83.00 price target on International Flavors & Fragrances (NYSE: IFF).

The analyst commented, "We think the debate around growth is now one of the most important debates on IFF's stock. IFF has resolved its leverage challenge, now that the Pharma divestment is complete (UBS 2025e ~2.8x net debt/EBITDA vs ~4x in 2024). The next focus point is on growth. There are debates both on market dynamics (weakening consumers, impact of GLP-1s, etc), and IFF's own performance vs peers. Now that IFF has broken out Food Ingredients from flavors (Taste segment), we can also do some additional analysis. Our conclusion on the question we started with is no, IFF cannot grow above peers with the current portfolio. The Food Ingredients business is a drag on margins and growth, and IFF should trade at a discount to peers based on this lower growth. At a segment level, the answer is less clear as IFF has outgrown peers recently in Taste and Scent (Fragrance), and Health/Bio has lagged (enzymes/probiotics). We maintain our Neutral rating as we look to get more visibility on IFF performance vs peers and market growth, but go into detail in this note on the data we have so far and examine some portfolio optionality as well."

For an analyst ratings summary and ratings history on International Flavors & Fragrances click here. For more ratings news on International Flavors & Fragrances click here.

Shares of International Flavors & Fragrances closed at $76.90 yesterday.

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