- Three chief elements have caused a prolonged decline in the INGR price since 2017, and all of these have been substantially mitigated by recent developments.
- By-product commodity prices should see improvement due to political developments, delivering gross margin improvements.
- The promising vaccine developments should also benefit beleaguered brewery and beverage end-markets as they indicate an eventual end to lock-downs.
- Transitory one-offs will also fall increasingly in the past as INGR future-proofs their assets.
- Not reflected in INGR's rebound with the market from local lows, we think these changing dynamics make INGR a buy.
For further details see:
Macro Developments Benefit Ingredion More Than Market Realises