With a market cap of $25.60 billion, International Flavors & Fragrances Inc. (IFF) is a specialty chemicals company. Headquartered in New York, IFF serves diverse industries, including food, beverage, personal care, and home care, specializing in creating and manufacturing flavors, fragrances, and cosmetic actives. The company’s innovative and sustainable solutions in flavor and scent design drive advancements in product differentiation and consumer experience, addressing the evolving needs of its global clientele.
IFF has significantly outperformed the broader market over the last year. The stock has gained 49.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. Also, in 2024, the stock has gained 24%, compared to SPX's 16.8% gains on a YTD basis.
Narrowing the focus, IFF also outperformed the iShares U.S. Basic Materials ETF (IYM). The exchange-traded fund has gained 3.1% on a YTD basis.
On Aug 6, IFF reported its Q2 results. Its adjusted EPS of $1.16 beat the consensus estimates of $1.01. The company’s revenue of $2.89 billion exceeded Wall Street forecasts of $2.82 billion. IFF expects full-year revenue to be between $11.1 billion to $11.3 billion. IFF shares gained 2% on the day the results were released.
For the current fiscal year, ending in December, analysts expect IFF’s EPS to grow 27% to $4.24 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on one other occasion.
Among the 19 analysts covering IFF stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, nine “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago, with six analysts recommending a “Strong Buy.”
On Aug. 8, Jeffrey Zekauskas from JPMorgan Chase & Co. (JPM) maintained a “Buy” rating on International Flavors & Fragrances, with a price target of $102, which indicates a 1.6% upside from the current levels.
The mean price target of $103 represents a 2.6% premium to IFF’s current price levels. The Street-high price target of $116 suggests an upside potential of 15.5%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
