IFF Stock Forecast & Price Target

International Flavors & Fragrances (IFF) has demonstrated a significant improvement in Return on Capital (ROC), rising from 2.77% to 5.32% over the last twelve months, with expectations of further growth to 6.37% in the near term. The company's taste segment sales reached $631 million, reflecting a 3% year-over-year increase and a 6% increase on a currency-neutral basis, driven by robust growth across all regions. With taste and scent segments each contributing around 25% to profits and a strong health and biosciences business generating 30% of profits, IFF is positioned for continued expansion in the specialty ingredients market.

International Flavors & Fragrances is projected to experience a decrease in net sales revenue, forecasting a decline of 5.56% to $10.68 billion over the next twelve months due to the divestiture of several significant businesses, including Pharma Solutions and specific soy-related operations. Despite maintaining a year-over-year net sales revenue of approximately $11.30 billion for the twelve months ending June 2025, the stagnation reflects underlying challenges within its operational segments. Furthermore, various factors may adversely affect the company's capacity to achieve its financial objectives, contributing to an overall negative outlook on its stock performance.