Ingredion (INGR – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Andrew Strelzik from BMO Capital maintained a Hold rating on the stock and has a $117.00 price target.
Geoff Meacham has given his Hold rating due to a combination of factors affecting Ingredion’s near-term and mid-term financial outlook. While Ingredion’s fourth-quarter earnings per share surpassed the consensus, this was partly due to non-recurring benefits that may not be indicative of the company’s underlying performance. Looking ahead, the company’s earnings are expected to face challenges, including the impact of currency devaluation in Argentina and higher input costs. Despite these headwinds, earnings are projected to improve as the year progresses due to expected improvements in various operational areas.
Moreover, Ingredion’s strategic initiatives, aimed at expanding operating margins and capitalizing on the growth in specialty ingredients, provide a solid foundation for mid-term success. The company’s focus on high-margin specialty starches and potential for innovation in branded consumer goods and plant-based proteins are promising. Additionally, Ingredion’s position for potential acquisitions and increased share repurchases could enhance shareholder value. However, the current valuation of the stock, in light of these factors, informs the Hold rating as it reflects a balanced view of the potential risks and opportunities.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $115.00 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 sees Q1 revenue down mid-single-digits, consensus $2.09B
- Ingredion Incorporated Reports Strong 2023 Fourth Quarter and Full-Year Results
- Ingredion sees FY24 adjusted EPS $9.15-$9.85, consensus $9.76
- Ingredion reports Q4 adjusted EPS $1.97, consensus $1.87
- INGR Upcoming Earnings Report: What to Expect?
