Goldman Sachs analyst Adam Samuelson maintained a Hold rating on Ingredion (INGR – Research Report) yesterday and set a price target of $119.00.
Adam Samuelson from Goldman Sachs firm has given a Hold rating to Ingredion’s stock (INGR). This decision was influenced by a number of factors including the company’s ability to maintain strong margins amidst an unpredictable demand environment. In the third quarter of 2023, Ingredion managed to offset lower realized prices and a decline in organic volume through productivity gains and cost deflation. The company’s bottom-line results were also supported by a favorable tax environment.
Samuelson’s rating also factors in the company’s future prospects. The management of Ingredion has raised the midpoint of its 2023 adjusted EPS guidance, indicating confidence in the company’s performance. The firm is also seeing a sequential improvement in volume trends and shares a positive outlook based on an upgraded core portfolio and expanding Specialties capabilities. Furthermore, the renewed contracts with large North American tolling customers are expected to boost margins in 2024. Moreover, the improved affordability of corn-based ingredients compared to sugar outside the US is expected to stimulate demand and potentially influence pricing positively. In conclusion, the Hold rating reflects Samuelson’s belief in the company’s strong execution and commercial momentum.
Samuelson covers the Consumer Defensive sector, focusing on stocks such as Darling Ingredients, Lamb Weston Holdings, and Cal-Maine Foods. According to TipRanks, Samuelson has an average return of 4.6% and a 44.35% success rate on recommended stocks.
In another report released on November 1, Barclays also maintained a Hold rating on the stock with a $110.00 price target.
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Ingredion (INGR) Company Description:
Ingredion, Inc. manufactures and sells sweetener, starches, nutrition ingredients, and biomaterial solutions derived from the wet milling and processing of corn and other starch based materials. Its activities include turning corn, tapioca, potatoes and other vegetables and fruits into value added ingredients and biomaterials for the food, beverage, paper and corrugating, brewing, and other industries. The company was founded in 1906 and is headquartered in Westchester, IL.
Read More on INGR:
- Ingredion to Realign Its Business to Better Serve Customers and Enhance Clarity for Financial Stakeholders
- Ingredion Incorporated Reports Strong Third Quarter Results and Raises Full-Year Outlook
- Is INGR a Buy, Before Earnings?
- Ingredion price target lowered to $110 from $118 at Barclays
- Ingredion to Release Third Quarter 2023 Financial Results on November 7, 2023
