Goldman Sachs analyst Adam Samuelson maintained a Hold rating on Ingredion (INGR – Research Report) today and set a price target of $122.00.
Geoff Meacham has given his Hold rating due to a combination of factors that suggest a balanced outlook for Ingredion’s stock. The analyst has updated estimates ahead of the company’s fourth-quarter earnings, taking into account slightly improved volume assumptions and favorable currency exchange rates. Additionally, adjustments to the modeling have led to an increased earnings per share (EPS) prediction for the quarter, which now slightly exceeds the consensus. Despite these positive adjustments, the overall view remains cautious, which justifies the Hold rating.
The modest increase in the full-year EPS estimate for the following year reflects an anticipation of stable margins, with annual contracts expected to maintain pricing similar to the year before. Furthermore, there is an assumption of potential benefits from lower corn prices, which could make corn-based ingredients more competitive against sugar. However, even with these favorable factors and a raised 12-month price target, the analyst maintains a neutral stance on Ingredion’s prospects, suggesting that the current market price adequately reflects the company’s value and future potential.
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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.
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