BMO Capital analyst Andrew Strelzik has maintained their neutral stance on INGR stock, giving a Hold rating yesterday.
Andrew Strelzik has given his Hold rating to Ingredion due to a combination of factors such as the company’s financial performance and market conditions. Despite Ingredion’s better-than-expected 3Q23 results and elevated 2023 EPS guidance, there are concerns about the 4Q EPS falling below consensus. Strelzik also noted the potential for profit growth in 2024, backed by recovering volumes and the securing of multi-year contracts with larger clients which are expected to support margin expansion.
However, Strelzik points out the risks associated with Ingredion’s international operations, particularly in South America and EMEA, where lower profits and challenging economic conditions are expected. While Asia-Pacific operations show promise for strong profit growth, Strelzik remains cautious due to potential volatility in the improvement of volumes. Furthermore, despite the potential boost in earnings from M&A and share repurchases, Strelzik is waiting for more clarity on the sustainability of volume improvements and other factors before changing his rating. This is also due to the market’s positive reaction to the 3Q report, which limits the potential upside to his target price.
Strelzik covers the Consumer Cyclical sector, focusing on stocks such as Darden, Wendy’s, and Bloomin’ Brands. According to TipRanks, Strelzik has an average return of 3.2% and a 54.55% success rate on recommended stocks.
In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a $119.00 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 announces reorganization of its business operations
- Ingredion to Realign Its Business to Better Serve Customers and Enhance Clarity for Financial Stakeholders
- Ingredion raises FY23 adjusted EPS view to $9.05-$9.45 from $8.80-$9.40
- Ingredion reports Q3 adjusted EPS $2.33, consensus $1.96
- Ingredion Incorporated Reports Strong Third Quarter Results and Raises Full-Year Outlook
