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International Flavors & Fragrances Inc.’s (IFF) Q4 Results Ease Concerns About European Slowdown, Says BofA

International Flavors & Fragrances Inc. (NYSE:IFF) is among the 9 Undervalued Chemical Stocks to Buy According to Hedge Funds.

International Flavors & Fragrances Inc. (NYSE:IFF) is one of the best chemical stocks.

TheFly reported on February 17 that Deutsche Bank and Mizhou raised their price targets on IFF. Deutsche Bank raised its price target by $20 while Mizhou raised it by $7. Similarly, a day earlier on February 16, Bank of America also raised its price target on IFF to $100 from $88 and kept a Buy rating.

According to BofA, the company’s fourth-quarter results and 2026 predictions eased concerns about its European counterparts’ slower performance. The analyst underlined that a shift in strategy toward targeted business investments and organic development, which was initiated about two years ago and required additional funding, is now starting to bear fruit.

Regarding the company’s results, International Flavors & Fragrances Inc. (NYSE:IFF) published its Q4 and full-year 2025 report on February 11, 2026. In addition to Q4 net sales of $2.59 billion, which are down 7% year over year but up 1% on a currency-neutral basis, the report reports adjusted EPS of $0.80 and GAAP EPS of $0.07. Health & Biosciences and Scent saw mid-single-digit growth, while Taste saw low-single-digit gains.

The report also shows that full-year net sales totaled $10.89 billion, which is down 5% but up 2% on a currency-neutral basis. Adjusted operating EBITDA rose 7%, which is supported by productivity, volume, and pricing. Operating cash flow was $850 million, with free cash flow of $256 million.

Moreover, for 2026, the company expects sales of $10.5–10.8 billion and adjusted EBITDA of $2.05–2.15 billion, with currency-neutral sales growth of 1%–4% and EBITDA growth of 3%–8%.

International Flavors & Fragrances Inc. (NYSE:IFF) creates flavors, fragrances, and cosmetic ingredients for food, beverages, personal care, and household products worldwide, focusing on innovation and sensory experiences to enhance consumer products.

While we acknowledge the potential of IFF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IFF and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Unstoppable Dividend Stocks to Buy According to Analysts and Dividend Champions, Contenders and Challengers list: 15 Highest Yielding Stocks.

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
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  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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