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Jefferies Raises PT on Darling Ingredients (DAR) Stock

Darling Ingredients Inc. (NYSE:DAR) is one of the Best Mid Cap FMCG Stocks to Buy Now. Jefferies lifted the price target on the company’s stock to $46 from $45, while keeping a “Buy” rating, as reported by The Fly. As per the firm, Street estimates for Q2 2025 are high, and it anticipates them to trend lower. However, it also sees upside to the estimates for H2 and remains constructive, with macro conditions beginning to improve, opines the firm analyst. Amidst the broader challenges witnessed by the biofuel industry during H1 2025, Darling Ingredients Inc. (NYSE:DAR)’s core business performed well, leading to the overall positive cash flow and showcasing stability in a volatile business environment.

A selection of pet food ingredients being prepared in a kitchen for quality and safety testing.

Darling Ingredients Inc. (NYSE:DAR) highlighted that the positive narrative related to renewable fuels public policy appears to be encouraging, which has been fueling strong market demand for domestic fats. The company expects its core business to continue to perform well, generating cash and allowing it to continue to de-lever the balance sheet and opportunistically repurchase shares. The net cash provided by operating activities amounted to $248.9 million.

Darling Ingredients Inc. (NYSE:DAR) has announced that it has signed a non-binding term sheet with Tessenderlo Group to combine the collagen and gelatin segments of their companies in a new company named Nextida™. The partnership focuses on creating a top-tier, collagen-based health, wellness, and nutrition products company positioned to capitalize on global collagen growth.

Riverwater Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

Darling Ingredients Inc. (NYSE:DAR) is a global leader in the production of sustainable ingredients derived from animal by-products, food waste, and other organic residuals. The company operates in three segments: Feed, Food, and Fuel. It has significant exposure to renewable energy through its Diamond Green Diesel JV with Valero Energy Corporation (VLO), which produces renewable diesel and sustainable aviation fuel. This business should start to see a significant ramp in 2025. Darling’s vertically integrated operations support the circular economy, focusing on reducing waste and creating value-added products like biofuels, collagen, and specialty food ingredients. Darling trades for 11x Wall Street’s 2025 earnings estimate.”

Darling Ingredients Inc. (NYSE:DAR) supports the FMCG industries as it supplies critical raw materials utilised in food, cosmetics, and household products.

While we acknowledge the potential of DAR to grow, 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 DAR and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.

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