International Flavors & Fragrances Inc. (IFF), headquartered in New York, produces and markets cosmetic active and natural health ingredients for use in various consumer products. Valued at $16.7 billion by market cap, the company's flavors and fragrances are individual ingredients and compounds of a large number of ingredients that are blended, mixed, and reacted together to produce proprietary formulas.
Shares of this leading global creator of flavors and fragrances have considerably underperformed the broader market over the past year. IFF has declined 33.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 16.1%. In 2025, IFF stock is down 22.8%, compared to the SPX’s 9.7% rise on a YTD basis.
Narrowing the focus, IFF’s underperformance is also apparent compared to the Materials Select Sector SPDR Fund (XLB). The exchange-traded fund has declined about 1.2% over the past year. Moreover, the ETF’s 6.4% returns on a YTD basis outshine the stock’s double-digit losses over the same time frame.
On Aug. 5, IFF reported its Q2 results, and its shares fell over 10.4% in the following four trading sessions. Its adjusted EPS of $1.15 topped Wall Street expectations of $1.11. The company’s revenue was $2.8 billion, topping Wall Street forecasts of $2.7 billion. IFF expects full-year revenue in the range of $10.6 billion to $10.9 billion.
For the current fiscal year, ending in December, analysts expect IFF’s EPS to decline 2.1% to $4.22 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 20 analysts covering IFF stock, the consensus is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, two “Moderate Buys,” five “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago, with 13 analysts suggesting a “Strong Buy.”
On Aug. 11, Morgan Stanley (MS) analyst Lisa De Neve maintained a “Buy” rating on IFF and set a price target of $92, implying a potential upside of 40.9% from current levels.
The mean price target of $83.99 represents a 28.6% premium to IFF’s current price levels. The Street-high price target of $105 suggests an ambitious upside potential of 60.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
