IFF Stock Forecast & Price Target

International Flavors & Fragrances (IFF) has demonstrated significant financial improvement, with Return on Capital (ROC) rising from 2.77% to 5.32% over the last twelve months, indicating enhanced operational efficiency and profitability. The company reported taste sales reaching $631 million, marking a 3% year-over-year increase, or 6% on a currency-neutral basis, driven by broad-based growth across all regions. Furthermore, forecasts suggest an anticipated increase in ROC to 6.37% over the next twelve months, underscoring the company's positive trajectory in financial performance.

International Flavors & Fragrances is projected to experience a decline in revenue, with forecasts estimating a 5.56% drop to $10.68 billion over the next twelve months due to the divestiture of key business segments, including Pharma Solutions and several soy-related products. Additionally, for the twelve months ending June 2025, the company's net sales revenue remains largely stagnant at $11.30 billion, indicating a lack of growth momentum. Various factors are anticipated to adversely affect the company's ability to achieve its financial targets, thus contributing to a negative outlook on its stock.