Analysts Bullish On Darling Ingredients (DAR) Amid Improving Margins And Debt Paydown

On the back of strong hedge fund and analyst support, Darling Ingredients Inc. (NYSE:DAR) features on our list of the best commodity stocks to buy in 2026. The stock carries an upside of 26.9%.

Following its investor day, the stock drew renewed analyst attention, with its investment case now shifting toward margin improvement and debt paydown, while the investor day provided greater visibility into how management aims to achieve those goals.

Two analyst updates landed on May 12, 2026, telling a consistent story.

BofA analyst Conor Fitzpatrick raised the firm’s price target to $85 from $80 and kept a “Buy” rating, calling the company’s investor day a “multifaceted update on capital allocation and the balance sheet.” Fitzpatrick said details on the path to structurally higher margins via high-grading output “look solid and the gains are material.”

TD Cowen echoed that constructive view, reiterating a “Buy” rating and a $76 price target on the same day.

The firm cited strong margin conditions across Darling’s business segments and flagged margin expansion, rather than volume growth, as the bigger near-term opportunity. TD Cowen identified $150 million to $300 million in potential upside from Feed margin expansion and an estimated $80 million from the Food segment, not yet reflected in current estimates.

On the balance sheet, TD Cowen expects Darling’s cash generation to bring debt below its target levels by early 2027, in line with the firm’s forecasts. The analyst noted that Darling has not disclosed capital allocation priorities once that debt target is reached, though the firm views large-scale mergers and acquisitions as unlikely.

Darling Ingredients Inc. (NYSE:DAR) develops and produces natural ingredients from edible and inedible bio-nutrients. The company’s operations are divided into the following segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients.

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