2023-08-09 12:37:31 ET
International Flavors & Fragrances ( NYSE: IFF ) -2.8% in Wednesday's trading, extending the stock's two-day loss to more than 21% after missing Q2 earnings expectations and slashing its full-year sales guidance .
A day after Stifel cut the stock to Hold from Buy with an $85 price target, sliced from $123, Goldman Sachs jumped in with its own downgrade to Hold from Buy, slashing its PT to $78 from $120 previously.
"The cumulative effect of numerous operational challenges for IFF over the past several years leaves us with limited confidence that this quarter marks the clear bottom in forward earnings expectations," Goldman's Adam Samuelson and Guillermo Huerta wrote.
While macro demand conditions have proven considerably more challenging than expected, the sharp deterioration in results in the Functional Ingredients unit - 25% of total company sales - "speaks to this part of the portfolio facing real market share loss and/or commoditization pressures that are unlikely to be quickly resolved," the analysts said.
IFF's ( IFF ) financial leverage "leaves limited room for incremental earnings disappointment while simultaneously raising the importance of asset sales in the near-to-medium term, Goldman said.
More on International Flavors & Fragrances:
- Financial and valuation comparison to sector peers
- Analysis: International Flavors & Fragrances: Protein Problems
- Stock price return: Down 39% YTD, down 49% in the past 12 months
For further details see:
International Flavors cut at Goldman with longer road ahead for turnaround