Piper Sandler lowers price target on Darling Ingredients stock after 3Q results, maintains Overweight rating

☀️Trending News

Darling Ingredients ($NYSE:DAR) is a global leader in converting natural and sustainable feed and food by-products into ingredients for various industries. The company’s innovative and environmentally-friendly approach has made it a top choice for companies looking for sustainable ingredient solutions. On Friday, Piper Sandler, a leading investment bank and research firm, announced that it has lowered its price target on Darling Ingredients’ stock following the release of the company’s 3Q results. The new price target has been revised from $50.00 to $48.00, while maintaining an Overweight rating on the stock. This downward revision in Darling Ingredients’ price target comes after the company reported a slightly lower-than-expected revenue and earnings for the third quarter. Despite the slight miss in revenue and earnings, Piper Sandler is still maintaining an Overweight rating on Darling Ingredients’ stock. This is due to the company’s strong growth potential and its commitment to sustainability.

Darling Ingredients has been consistently expanding its operations and investing in new technologies to meet the growing demand for sustainable ingredients in various industries. Furthermore, Darling Ingredients’ strategic partnerships and acquisitions have also positioned the company for long-term growth and success. In fact, the company recently announced a joint venture with Valero Energy Corporation to create a renewable diesel facility in Louisiana, which is expected to be one of the largest of its kind in the world. In conclusion, despite the downward revision in price target, Piper Sandler remains optimistic about Darling Ingredients’ future prospects. The company’s commitment towards sustainability and its strategic initiatives make it a strong investment opportunity for long-term investors. With its diverse portfolio of sustainable ingredient solutions and strong growth potential, Darling Ingredients is well-positioned for success in the years to come.

Share Price

On Friday, Piper Sandler released a new report on Darling Ingredients, a global leader in the production of sustainable natural ingredients from edible and inedible bio-nutrients. According to the report, the investment firm has lowered its price target on Darling Ingredients stock after the company’s third quarter results. Despite a positive start to the day, with DARLING INGREDIENTS stock opening at $35.95 and closing at $36.98, up by 2.67% from the prior closing price of $36.02, Piper Sandler has reduced their price target on the company’s stock. This comes after the release of Darling Ingredients’ third quarter financial results. This was primarily attributed to higher raw material costs and weaker demand in certain markets.

However, they maintain an Overweight rating on the stock, indicating that they still believe in the company’s long-term growth potential. This is due to the company’s focus on sustainable practices and its strong position in the market for natural ingredients. Investors will have to closely monitor the company’s performance in the coming quarters to see if it can meet expectations and continue its growth trajectory. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Darling Ingredients. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Darling Ingredients. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Darling Ingredients. More…

Key Ratios Snapshot

Some of the financial key ratios for Darling Ingredients are shown below. More…

Analysis

After analyzing the financials of DARLING INGREDIENTS, I can confidently say that this company has a strong financial standing. In terms of cashflows and debt, it has scored a high health score of 8/10, which means that it is capable of sustaining its future operations even in times of crisis. This is a great sign for investors as it shows the stability of the company and its ability to weather any financial challenges. One key aspect that stands out for DARLING INGREDIENTS is its growth potential. It has been categorized as strong in growth, which means that it has a promising outlook for increasing its revenue and earnings in the future. This is an attractive factor for investors who are looking for companies with potential for high returns on their investment. In terms of profitability, DARLING INGREDIENTS falls under the medium category. This means that while it may not have the highest profitability among companies, it still has a decent level of profitability that can generate returns for investors. However, this may be an area of improvement for the company in the future. Another aspect to consider is DARLING INGREDIENTS’ assets and dividend. It has been classified as weak in these areas, which means that it may not have a strong asset base or consistent dividends for investors. This may not be ideal for investors who prioritize these factors, but it is important to note that the company’s strengths in other areas may offset these weaknesses. Based on the analysis, I would classify DARLING INGREDIENTS as a ‘rhino’ type of company. This is a company that has achieved moderate revenue or earnings growth, which aligns with the company’s strong growth potential. For investors, this means that DARLING INGREDIENTS may not have explosive growth like a ‘unicorn’ company, but it still has good prospects for growth and returns. Overall, I believe that investors who are interested in companies with strong financials, growth potential, and a stable outlook may be interested in DARLING INGREDIENTS. However, for those who prioritize assets and dividends, this may not be the best fit. It is important for investors to carefully consider their investment goals and risk tolerance before making a decision on investing in DARLING INGREDIENTS or any company. More…

Peers

The company produces a variety of ingredients for the food, beverage, and animal feed industries. Darling Ingredients Inc has a number of competitors, including Guilin Seamild Foods Co Ltd, Kore Foods Ltd, and Slantcho AD.

– Guilin Seamild Foods Co Ltd ($SZSE:002956)

Guilin Seamild Foods Co Ltd is a market leader in the production of rice-based food products in China. The company has a strong market presence in the domestic market and is also expanding its operations in the international market. The company has a market capitalization of 2.95 billion as of 2022 and a return on equity of 4.39%. The company is engaged in the production of a wide range of rice-based food products, including rice noodles, rice cakes, and rice crackers. The company has a strong research and development team that is constantly innovating new products to meet the changing needs of the market. The company is well-positioned to continue its growth in the future.

– Kore Foods Ltd ($BSE:500458)

Kore Foods Ltd is a food company that produces and sells food products. The company has a market cap of 156.58M as of 2022 and a Return on Equity of -46.07%. Kore Foods Ltd’s products include processed meats, poultry, and seafood; and prepared meals. The company sells its products through supermarkets, hypermarkets, and convenience stores in the United Kingdom, the United States, Canada, Australia, New Zealand, and internationally.

Summary

Piper Sandler has adjusted its outlook on Darling Ingredients stock following the company’s 3Q results. While maintaining an Overweight rating, the investment firm has lowered its price target from $50.00 to $48.00 per share. This decision was likely influenced by the company’s performance in the third quarter, which may have fallen short of expectations. Investors should take note of this development and reassess their investment strategy for Darling Ingredients accordingly.