Oppenheimer upgraded International Flavors & Fragrances (NYSE:IFF) from Perform to Outperform on Friday and assigned a price target of $97.00, a level the firm says represents roughly a 19% upside from the closing price on Thursday.
The analyst house frames the move around a view that market conditions are beginning to align with the strategic actions IFF put into place in early 2024. Those actions were implemented after a period in which falling volumes and weak sentiment across the industry weighed on the companys share performance over the prior year.
Despite not being profitable over the most recent twelve-month period, the company is expected by analysts tracked by InvestingPro to return to profitability in the coming year. Those analysts project an earnings per share figure of $4.50 for fiscal year 2026.
Oppenheimer sets out three central pillars supporting its more constructive stance on IFF:
- Improved volume backdrop - The firm expects a more favorable demand environment to drive volume growth into 2026.
- Balance-sheet progression - Oppenheimer views IFF as moving from a stabilization phase toward strengthening its balance sheet, with an increased emphasis on cash generation.
- Potential value unlock - The companys exploration of a sale of its Food Ingredient business could create additional shareholder value, according to the firm.
InvestingPro analysis cited by the firm indicates the shares may be slightly undervalued at present. Additional commentary highlights IFFs 55-year record of uninterrupted dividend payments, which the analysis views as evidence of the firm's long-term financial resilience despite recent profit challenges.
Oppenheimer also pointed to company guidance suggesting that 2026 will be a volume-driven year. The firm noted this outlook is arriving at a time when sentiment toward both chemicals and consumer staples appears to be improving, a factor Oppenheimer believes supports its upgraded rating.
The upgrade signals Oppenheimers support for IFFs turnaround program, which the firm indicates is now better positioned to deliver results as industry conditions recover.
On the companys most recent quarterly performance, International Flavors & Fragrances reported mixed results for the fourth quarter of 2025. EPS came in at $0.80, shy of the $0.83 expected by the market. Revenue, however, exceeded forecasts at $2.59 billion versus the $2.51 billion analysts had anticipated.
The divergence between a revenue beat and an EPS miss underscores a split in top-line and bottom-line performance, a dynamic that may shape investor sentiment and analyst evaluations going forward. Market participants and analysts are likely to monitor IFFs strategic responses and execution as the company navigates this transitional period.