Is the stock performance of International Flavors & Fragrances (IFF) falling short compared to the Materials sector?
In the world of taste, scent, nutrition, and ingredient solutions, IFF, a New York-based company, has been experiencing a downturn over the past few months. Over the past three months, shares of IFF have declined 15.9%.
This decline can be attributed to a variety of factors. For instance, IFF's adjusted EBITDA fell 6.1% year-over-year to $552 million, primarily due to a decrease in earnings from the scent segment. Compared to the year-ago quarter, IFF's top-line declined 4.3% and its adjusted EPS dropped marginally.
Despite these challenges, analysts maintain a moderately optimistic view of IFF's prospects. With a consensus rating of "Moderate Buy" from 20 analysts covering it, IFF's mean price target of $84.64 suggests a 31.2% premium to its current price levels.
IFF's broad portfolio, strong customer relationships, and worldwide reach make it a trusted partner to leading consumer and industrial companies. The company blends science and creativity to meet evolving consumer preferences, particularly in areas like clean-label foods, plant-based nutrition, and wellness-driven personal care.
In recent months, IFF has underperformed its rival, Givaudan SA, which declined 21.1% over the past 52 weeks and 1.9% on a YTD basis. On the other hand, the Materials Select Sector SPDR Fund's (XLB) rose by 2.9% during the same time frame.
IFF's shares tumbled 6.3% in the trading session following the Q2 results announcement. Since early November 2024, the company has been trading below its 200-day moving average, and it has remained below its 50-day moving average since late October 2024.
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In the midst of these challenges, IFF reported better-than-expected Q2 revenue of $2.8 billion and adjusted EPS of $1.15. The company continues to strive towards meeting the evolving needs of its customers and consumers.
Disclosure: Neharika Jain did not have positions in any of the securities mentioned in the article on the date of publication.
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