With a market cap of $17.9 billion, International Flavors & Fragrances Inc. (IFF) is a leading global developer and manufacturer of flavors, fragrances, food ingredients, health and biosciences solutions, and specialty ingredients used across a wide range of consumer products. Headquartered in New York City, the company serves customers in the food and beverage, personal care, household products, pharmaceuticals, and nutrition industries.
Companies valued at more than $10 billion are generally considered “large-cap” stocks, and International Flavors & Fragrances fits this criterion perfectly. Its extensive research and development capabilities and broad product portfolio have established it as one of the world's largest and most diversified ingredients and fragrance companies.
Shares of the company have fallen 8.2% from its 52-week high of $84.45. Over the past three months, its shares have increased 12.8%, underperforming the broader Nasdaq Composite’s ($NASX) 13.6% rise over the same time frame.
IFF stock is up 15% on a YTD basis, outpacing NASX's 11.1% rise. However, shares of the ingredient’s producer have dipped 1.1% over the past 52 weeks, lagging behind the index’s 31.6% rise over the same time frame.
Despite recent fluctuations, the stock has been trading above its 50-day moving average since early May and over its 200-day moving average since early January, indicating an uptrend.
Shares of International Flavors & Fragrances rose 3.7% after Benchmark initiated coverage with a "Buy" rating and a $100 price target, citing the potential for significant shareholder value creation from the planned divestiture of its Food Ingredients segment. The firm expects the streamlined company to deliver steady growth and stronger margins, supporting a higher valuation.
In comparison, IFF stock has performed weaker than its rival, Linde plc (LIN). LIN stock has returned 20.9% YTD and 10% over the past 52 weeks.
Nevertheless, IFF stock has a consensus rating of “Strong Buy” from 21 analysts in coverage, and the mean price target of $91.83 is a premium of 18.5% to current levels.
