International Flavors & FragranNYSE: IFF
Materials · Specialty Chemicals
$76.96
+1.19%
Vol: 1.5M
Research Digest
Friday, June 19, 2026
IFF sells Food Ingredients unit for $4.3B to CVC Capital and scores new analyst initiation as Buy, signaling portfolio transformation is underway.
International Flavors & Fragrances agreed to sell its Food Ingredients business to CVC Capital Partners for approximately $4.30 billion, retaining a ~10% stake and a board seat. Benchmark initiated coverage on June 9 with a Buy rating and $100 price target, calling the divestiture a catalyst to "unlock considerable shareholder value." Bank of America maintained a Hold rating on June 15 while cutting its price target to $92 from $99. IFF also declared a $0.40/share quarterly dividend payable July 10 to shareholders of record June 18. The deal is expected to close in 2027, and IFF plans to refocus on its Taste, Scent, and Health & Biosciences segments with improved margins. Risk: deal execution and integration of remaining portfolio.
Previous Market Intelligence
13 daysJun 18No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 17No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 16No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14Benchmark initiated IFF at Buy with a $100 target on the pending Food Ingredients sale, and the company launched a $500M buyback, sending shares up ~3.7%.Positive▶
Benchmark initiated coverage of International Flavors & Fragrances with a Buy rating and a $100 price target, arguing the pending sale of its Food Ingredients segment will "unlock considerable shareholder value" and leave a streamlined company with exceptional margins; shares rose about 3.7% on the call. Separately, IFF announced a $500 million share repurchase program funded through available cash and operations with no fixed term. The stock trades around $78, up about 11.6% YTD and near its 52-week high of $83, with a P/E of ~24x versus the chemicals industry at ~28x. The consensus across 18 analysts is Buy with an average target of $91.43 (~23% upside). This matters because the divestiture-plus-buyback combination reframes IFF as a higher-margin, more focused business. The bear case: execution risk on the Food Ingredients sale, a heavy debt load context, and a poor 5-year total shareholder return (down ~38%).
May 21IFF surges 17% after Q1 blowout with EPS beating by 15%, all four segments deliver volume growthPositive▶
On May 5, IFF reported Q1 2026 adjusted EPS of $1.25 vs $1.07 consensus (15%+ beat) and revenue of $2.7B vs $2.64B estimate. For the first time in multiple quarters, all four business segments delivered volume-led growth, totaling 3% currency-neutral growth. Shares surged 17.2% the next trading session. Management reaffirmed FY26 revenue guidance of $10.5B-$10.8B with 1-4% organic growth and 3-8% adjusted EBITDA growth, even with a 5% divestiture headwind. The Soy Crush/Concentrates/Lecithin divestiture closed ahead of schedule in March, and the Food Ingredients sale process continues. IFF opened a Vanilla Innovation Center in Madagascar on May 11. Mean analyst PT of $92.04 suggests 25% upside. Risk: ongoing portfolio reshaping execution and successful Food Ingredients sale are key to deleveraging.
May 20International Flavors and Fragrances surges 17% on Q1 beat and reaffirmed guidance, opens Madagascar Vanilla Innovation CenterPositive▶
IFF shares jumped 17.2% following its May 5 Q1 2026 earnings release, where adjusted EPS of $1.25 beat the $1.07 consensus and sales of $2.7B exceeded $2.64B estimates. Reported net sales fell 4% YoY due to divestitures, but like-for-like currency-neutral sales rose 3%, free cash flow improved by $144M, and leverage dropped to 2.5x. Management reaffirmed 2026 revenue guidance of $10.5B-$10.8B and projects 1%-4% organic sales growth with 3%-8% adjusted EBITDA growth despite a 5% divestiture headwind. On May 11, IFF opened a 650-square-meter Vanilla Innovation Center in Toamasina, Madagascar, integrating lab analysis, extraction, scent and flavor creation, and application development at vanilla origin. Among 20 analysts, consensus is Moderate Buy with a $92.04 mean price target (24.9% upside) and Street-high of $105. JPMorgan raised its target to $92 and Wells Fargo issued a Buy.
May 19No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 18IFF stock jumped 17.56% after Q1 2026 adjusted EPS of $1.25 beat $1.07 consensus; JPMorgan raised price target to $92 from $90.Positive▶
International Flavors & Fragrances stock rallied 17.56% on May 6 after Q1 2026 adjusted EPS of $1.25 beat the $1.07 consensus and sales of $2.74B beat $2.64B. All four business segments delivered volume-led growth for the first time in multiple quarters, a 3% total increase on a currency-neutral basis. Management reaffirmed 2026 revenue guidance of $10.5B-$10.8B with 1%-4% organic sales growth and 3%-8% adjusted EBITDA growth, despite a 5% divestiture headwind. Wells Fargo initiated a Buy rating, JPMorgan raised the PT to $92 from $90, and Berenberg maintained Hold. IFF opened a new Vanilla Innovation Center in Madagascar in May and continues to manage the sale process for its remaining Food Ingredients unit.
May 15IFF stock jumped 17.6% on May 6 after Q1 2026 revenue of $2.74B and adjusted EPS of $1.25 beat consensus with multiple analyst PT hikesPositive▶
International Flavors & Fragrances (IFF) shares surged 17.56% on May 6, 2026 after Q1 2026 results: revenue of $2.74B and adjusted EPS of $1.25, beating $2.64B and $1.07 consensus by 15.7% on EPS. Sales grew across all segments with higher adjusted profitability and improved free cash flow. Management reaffirmed 2026 revenue guidance of $10.5B-$10.8B with 1%-4% organic sales growth and 3%-8% adjusted EBITDA growth despite a 5% divestiture headwind. The board kept its quarterly dividend at $0.40 per share payable July 10, 2026. The company is making progress on its portfolio simplification and deleveraging strategy with the completed sale of a commodity business and ongoing sale process for its Food Ingredients unit. IFF also opened a Vanilla Innovation Center in Madagascar. Analyst actions: Wells Fargo Buy rating, JPMorgan raised PT to $92 from $90, Citi to $96 from $90, Barclays to $90 from $80.
May 14IFF surges ~17.6% after Q1 EPS of $1.25 beats by 15.7%; multiple analysts hike PTs to $90-$96 rangePositive▶
IFF reported Q1 2026 adjusted EPS of $1.25 vs $1.07 consensus with sales of $2.7B vs $2.64B expected, sending shares up ~17.6% on May 6. Adjusted operating EBITDA rose 8% to $568M with FCF improving to $92M. Full-year guidance reaffirmed at $10.5-10.8B revenue and $2.05-2.15B EBITDA. Citi raised PT to $96 from $90, JPMorgan to $92 from $90, Oppenheimer to $90 from $88, Barclays to $90 from $80, and Wells Fargo issued a Buy on May 9. Company opened Vanilla Innovation Center in Madagascar May 11 and is progressing on Food Ingredients divestiture. Risk: Middle East exposure and inflation could pressure 2H results.
May 13IFF shares surged ~17.6% after Q1 adjusted EPS of $1.25 beat $1.07 consensus; multiple analysts hiked PTs including Citi to $96 and JPMorgan to $92.Positive▶
International Flavors & Fragrances reported Q1 2026 adjusted EPS of $1.25 versus $1.07 consensus and revenue of $2.74B versus $2.64B estimate, with stock jumping ~17.6% on May 6. Sales fell 3.6% YoY (divestiture impact) but volumes improved across all segments. The company reaffirmed FY2026 revenue guidance of $10.5B-$10.8B. IFF completed its commodity soy crush concentrates/lecithin divestiture, advanced its food ingredients sale, opened a Vanilla Innovation Center in Madagascar, and reduced leverage to 2.5x.
May 12IFF stock surged ~17% after Q1 2026 beat (EPS $1.25 vs $1.07; revenue $2.74B vs $2.64B) with multiple analyst PT hikes and progress on Food Ingredients divestiture.Positive▶
International Flavors & Fragrances posted Q1 2026 revenue of $2.74B and adjusted EPS of $1.25, beating consensus, with adjusted EBITDA up 8% to $568M and margin 110bps higher at 20.7% (highest since Q2 2022). Free cash flow jumped to $92M and all segments grew on a comparable currency-neutral basis. Management reaffirmed FY26 guidance of $10.5B-$10.8B revenue and adjusted EBITDA $2.05B-$2.15B, while flagging inflation and Middle East scent-segment risks for Q2. JPMorgan raised PT to $92, Citi to $96, Barclays to $90, Oppenheimer to $90, all Buy/Overweight. The Food Ingredients sale process is on track.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| SHWSHERWIN | $321.36 | +2.41% | +4.3% | 24.2x | 1.13 | $79.1B |
| ECLECOLAB | $269.94 | +0.33% | +8.2% | 28.0x | 0.91 | $75.7B |
| PPGPPG | $118.25 | +0.95% | +13.3% | 13.7x | 1.06 | $26.4B |
| IFFINTL | $76.96 | +1.19% | +3.1% | 15.9x | 0.96 | $19.6B |
| LYBLYONDELLBASELL | $59.94 | -3.03% | -15.8% | 8.0x | 0.33 | $19.4B |
| DDDUPONT | $47.82 | -0.28% | +1.0% | 18.2x | 1.08 | $19.3B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price above both MAs — bullish structure.