UBS Maintains Neutral Rating on International Flavors & Fragrances Inc. (IFF), PT $83

International Flavors & Fragrances Inc. (NYSE:IFF) is one of the best wide moat stocks to buy now. On June 9, UBS analyst Joshua Spector reiterated a Neutral rating on IFF, with a consistent target price of $83. The analyst’s evaluation refers to the company’s latest Pharma divestment, which has successfully lowered its net debt-to-EBITDA ratio from about 4x last year to an estimated 2.8x this year.

The analyst noted that the main challenge for International Flavors & Fragrances Inc. (NYSE:IFF) is now growth rather than leverage. Specter also observed the company’s performance relative to industry peers, in terms of consumer spending and the effect of GLP-1s.

Spector came to the conclusion that the company’s present portfolio lacks the growth drivers to outperform peer performance for now, noting the Food Ingredients division is dragging margins and growth. Therefore, the analyst believes IFF deserves a lower valuation compared to peers, given its forecasted reduced growth.

UBS Maintains Neutral Rating on International Flavors & Fragrances Inc. (IFF), PT $83

A lab technician analyzing natural food protection ingredients to ensure quality products.

Although IFF has experienced improved growth lately in its Taste and Scent segments compared to industry rivals, its Health/Bio segment, which includes enzymes and probiotics, has not kept up. The analyst is staying neutral for now, needing clearer signs of how IFF stacks up and how the market will grow.

International Flavors & Fragrances Inc. (NYSE:IFF) is a global player in the development and marketing of innovative ingredients across food, beverage, health, scent, and pharma sectors.

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