Darling Ingredients Maintains Buy Rating Amidst Policy Changes and Long-term Growth Potential

Analyst Andrew Strelzik of BMO Capital maintains a Buy rating on Darling Ingredients with a $45 price target. Despite current challenges, Strelzik is optimistic about the company's future due to expected policy changes and improved biofuels economics. He views the current market as an attractive entry point for investors, driven by strong fundamentals and potential for accelerated EBITDA growth in the medium to long term.

Analyst Andrew Strelzik of BMO Capital maintains a Buy rating on Darling Ingredients (DAR) with a $45 price target, despite current challenges. Strelzik is optimistic about the company's future due to expected policy changes and improved biofuels economics, viewing the current market as an attractive entry point for investors.

According to TipRanks, an analyst ratings platform, eight analysts have given DAR a Strong Buy rating in the past three months, with an average price target of $46.38. This represents a 29.08% upside from the current price of $35.93 [1]. The highest price target is $60.00, while the lowest is $34.00.

Strelzik's optimism is driven by strong fundamentals and the potential for accelerated EBITDA growth in the medium to long term. He believes that policy changes and improved biofuels economics will positively impact DAR's performance. Additionally, the company benefits from a strong financial base and positive technical momentum, according to Justin Jenkins of Raymond James [2].

However, some analysts have expressed concerns about valuation and segment-specific challenges. Jason Gabelman of TD Cowen has a Hold rating on DAR, citing challenges in the DGD segment and market uncertainties [3]. Despite these challenges, the majority of analysts remain bullish on DAR, with seven Buy ratings and one Hold rating in the current month [4].

DAR's earnings and sales forecasts for the next quarter are $0.24 and $1.49B, respectively. The company has performed in line with its overall industry in the past year [5]. Analysts expect DAR to benefit from policy changes and improved biofuels economics, leading to potential growth in the medium to long term.

References:
[1] https://www.tipranks.com/stocks/dar/forecast
[2] https://www.tipranks.com/stocks/dar/forecast
[3] https://www.tipranks.com/stocks/dar/forecast
[4] https://www.tipranks.com/stocks/dar/forecast
[5] https://www.tipranks.com/stocks/dar/forecast