Oppenheimer has maintained its Outperform rating on Ingredion (NYSE: NYSE:INGR) and increased the price target to $147.00 from $138.00.
The firm's decision comes as they revise their second-half 2024 earnings estimates upwards. The new forecast places the full-year 2024 earnings per share (EPS) at $10.05, which is above the midpoint of the company's guidance range of $9.70 to $10.20 and also surpasses the consensus estimate of $10.00.
The analyst at Oppenheimer adjusted the full-year 2025 EPS estimate for Ingredion to $10.85, up from the previous estimate of $10.60. This adjustment is based on the updated projections for the latter half of 2024, indicating an optimistic outlook for the company's financial performance in the coming year.
Ingredion, a leading global ingredients solutions company, has shown a robust financial performance that has warranted this positive reassessment by Oppenheimer. The upgraded price target reflects confidence in the company's ability to outperform the market expectations and deliver strong financial results.
In other recent news, Ingredion Incorporated has reported robust financial performance despite challenging market conditions. The company's second quarter of 2024 earnings surpassed consensus with an earnings per share (EPS) of $2.87, attributed to stronger profits in the non-specialty business segment and swift realization of cost savings.
This led to an upward revision of its EPS guidance for 2024. BMO Capital Markets responded to these developments by increasing the price target for Ingredion shares, expressing confidence in the company's volume recovery and accelerated cost savings.
Furthermore, Barclays (LON:BARC) has upgraded Ingredion stock from Equalweight to Overweight and set a new price target at $145.00, following the company's announcement of an approximate 5% increase in its adjusted EPS guidance for the fiscal year 2024. The firm expects Ingredion's performance to improve in the second half of 2024 and into early 2025, driven by expected volume recovery and cost savings initiatives.
Ingredion's Texture & Healthful Solutions segment is projected to experience margin growth as the company's investments in capacity expansion begin to yield results. The company is also making significant strides in sustainability, achieving a 22% reduction in global emissions and increased sustainable sourcing.
InvestingPro Insights
Oppenheimer's optimistic outlook on Ingredion (NYSE:INGR) aligns with several key metrics and insights from InvestingPro. The company's P/E ratio of 13.49 and adjusted P/E ratio of 14.04 for the last twelve months as of Q2 2024 support Oppenheimer's valuation approach, suggesting that the stock may indeed be trading at an attractive multiple relative to its earnings potential.
InvestingPro Tips highlight that Ingredion has raised its dividend for 13 consecutive years and has maintained dividend payments for 27 consecutive years, indicating a strong commitment to shareholder returns. This is further supported by the company's current dividend yield of 2.38% and an impressive dividend growth of 12.68% over the last twelve months.
The company's financial health appears robust, with InvestingPro Data showing a market capitalization of $8.74 billion and a strong revenue of $7.71 billion over the last twelve months as of Q2 2024. Additionally, Ingredion's profitability is evident from its adjusted operating income of $901 million and an operating income margin of 11.68% for the same period.
InvestingPro Tips also point out that Ingredion is trading near its 52-week high, which is consistent with the stock's impressive 52.42% price total return over the past year. This performance underscores the market's positive sentiment towards the company, aligning with Oppenheimer's bullish stance.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Ingredion, providing a deeper understanding of the company's financial position and market performance.
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