Darling Ingredients: Jefferies Raises PT to $46, Maintains Buy Rating

Monday, Jul 7, 2025 12:16 pm ET1min read

Darling Ingredients: Jefferies Raises PT to $46, Maintains Buy Rating

In a recent update, Jefferies has initiated coverage on Darling Ingredients Inc. (DAR), raising the price target to $46.00 and maintaining the Buy rating [1]. This marks a 31% upside potential from the current price, reflecting the firm's bullish outlook on the company's growth prospects.

Jefferies expects Darling Ingredients to achieve a 12% revenue compound annual growth rate (CAGR) over fiscal years 2025-2028, driven by robust demand for two-wheelers, industry premiumization, increasing content per vehicle, and expansion into four-wheelers and exports [1]. The research firm also projects a 12% EBITDA CAGR and an 18% earnings per share (EPS) CAGR over the same period, with a focus on deleveraging the company’s balance sheet.

The firm considers Darling Ingredients' valuation of 18 times the FY26 price-to-earnings ratio attractive, given its strong growth outlook. Jefferies also noted that any simplification of the company's group structure could potentially boost valuations further [1].

References:
[1] https://www.investing.com/news/analyst-ratings/jefferies-initiates-belrise-industries-stock-with-buy-rating-inr135-target-93CH-4125110

Darling Ingredients: Jefferies Raises PT to $46, Maintains Buy Rating

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