Darling Ingredients (DAR – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Adam Samuelson from Goldman Sachs maintained a Buy rating on the stock and has a $73.00 price target.
Adam Samuelson has given his Buy rating due to a combination of factors highlighting Darling Ingredients’ robust performance and future growth prospects. The company’s first quarter of fiscal year 2024 earnings showcased stronger than anticipated margins in its Diamond Green Diesel (DGD) segment. This strength helped to mitigate some of the softer results seen in the core ingredients division. Additionally, Samuelson notes that the guidance provided for the remainder of the year seems to be cautiously calculated, suggesting there could be room for positive surprises if conditions improve.
Despite a modest downward revision in the expected EBITDA for 2024, the outlook for year-over-year growth in 2025 appears promising for both the DGD segment and the parent company. This is anticipated even without a broader improvement in the commodity markets. Samuelson believes that this growth trajectory will contribute to a significant increase in Darling Ingredients’ free cash flow, supporting the firm’s $73 price target and reinforcing the rationale behind the Buy rating.
According to TipRanks, Samuelson is a 3-star analyst with an average return of 2.2% and a 44.30% success rate. Samuelson covers the Consumer Defensive sector, focusing on stocks such as Cal-Maine Foods, Darling Ingredients, and Pilgrim’s Pride.
In another report released yesterday, Jefferies also assigned a Buy rating to the stock with a $57.00 price target.
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Darling Ingredients (DAR) Company Description:
Darling Ingredients, Inc. engages in the development and production of natural ingredients from edible and inedible bio-nutrients. It operates through the following segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The Feed Ingredients segment includes ingredients business such as fats and proteins used cooking oil, trap grease and food residuals collection, the Rothsay ingredients, and the ingredients and specialty products. The Food Ingredients segment comprises gelatin, natural casings and meat by-products, and specialty products activities. The Fuel Ingredients segment consists of biofuel and bioenergy services. The company was founded in 1882 and is headquartered in Irving, TX.
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