BofA Lifts IFF Price Target to $100 Following Q4 Results and 2026 Guidance
Bank of America raised its IFF price target to $100 after the company posted Q4 net sales of $2.59 billion, down 7% year-over-year but up 1% on a currency-neutral basis, with adjusted EPS of $0.80 and GAAP EPS of $0.07. Full-year sales reached $10.89 billion, adjusted EBITDA grew 7%, and management projected 2026 sales of $10.5–10.8 billion and adjusted EBITDA of $2.05–2.15 billion, reflecting 1–4% currency-neutral sales and 3–8% EBITDA growth.
1. Q4 Financial Performance
IFF reported Q4 net sales of $2.59 billion, a 7% year-over-year decline but a 1% increase on a currency-neutral basis. The company delivered adjusted EPS of $0.80 and GAAP EPS of $0.07, with Health & Biosciences and Scent segments posting mid-single-digit growth and Taste achieving low-single-digit gains.
2. Full-Year Results and Cash Flows
Full-year 2025 net sales totaled $10.89 billion, down 5% nominally but up 2% on a currency-neutral basis. Adjusted operating EBITDA rose 7%, driven by productivity improvements, higher volumes, and pricing actions, while operating cash flow reached $850 million and free cash flow was $256 million.
3. 2026 Outlook
Management forecast 2026 net sales between $10.5 billion and $10.8 billion, with currency-neutral sales growth of 1–4%. Adjusted EBITDA guidance of $2.05–2.15 billion implies 3–8% growth, reflecting continued investment in targeted business segments and organic development.
4. Analyst Reactions and Price Targets
Bank of America raised its IFF price target to $100 from $88, citing Q4 results that eased concerns about a European slowdown. Deutsche Bank increased its target by $20 and Mizhou by $7, highlighting the early returns from the company’s strategic shift toward targeted investments and organic growth.