International Flavors & Fragrances Shows Mixed Performance Amid Market Growth
Company Overview and Recent Performance
Headquartered in New York, International Flavors & Fragrances Inc. (IFF) is a global leader in creating innovative solutions for the food, beverage, health, biosciences, and fragrance industries. With a market cap of $21.9 billion, IFF develops cutting-edge flavors, fragrances, and ingredients that enhance consumer products worldwide, serving manufacturers, healthcare providers, and researchers in various industries.
Stock Performance Compared to Market Indexes
Shares of International Flavors & Fragrances have underperformed the broader market over the last year, gaining only 6.5%, while the S&P 500 Index ($SPX) has increased by about 22.5%. In 2025, IFF’s stock saw a smaller gain of 2.3% compared to the SPX’s 4.2% growth year-to-date.
ETF Comparison and Recent Earnings
Narrowing the focus, IFF outperformed the iShares U.S. Basic Materials ETF (IYM), which gained 4.6% over the past 52 weeks; however, the stock lagged behind the ETF’s 9.3% return in 2025.
On February 18, IFF reported its Q4 results, showing an adjusted EPS of $0.97, which surpassed the consensus estimate of $0.78—a 34.7% year-over-year increase. Revenue rose 3% to $2.77 billion, exceeding Wall Street’s forecast of $2.67 billion. Adjusted operating EBITDA reached $471 million, a 5% increase on a comparable basis, driven by volume growth and productivity gains.
Future Earnings Expectations and Analyst Ratings
For the current fiscal year ending in December, analysts expect IFF’s EPS to marginally increase to $4.35 on a diluted basis. The company’s earnings surprise history has been mixed; IFF has outperformed consensus estimates in three of the last four quarters but missed in one instance.
Among the 19 analysts covering IFF stock, the consensus rating is a “Moderate Buy,” based on 13 “Strong Buy” ratings, one “Moderate Buy,” four “Holds,” and one “Strong Sell.” This represents a slight improvement over two months ago, when 12 analysts recommended a “Strong Buy.”
Analyst Adjustments and Market Outlook
On February 14, Berenberg lowered IFF’s price target to $92 from $99 while maintaining a “Hold” rating. The firm noted that accelerating innovation and promotions in 2025 may favor Givaudan, which has strong exposure to key growth categories.
The mean price target of $102.50 suggests an 18.6% premium over IFF’s current price, while the highest target of $115 indicates a potential upside of 33%.
On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
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