08:00 AM EDT, 05/08/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $16 to $106, or 23.0x our 2025 EPS estimate, a premium to IFF's three-year average forward P/E of 20.8x, which we think is warranted given a return to positive volume growth and productivity gains. We increase our 2024 EPS estimate by $0.21 to $4.00 and our 2025 EPS forecast by $0.12 to $4.60. IFF posts Q1 adj. EPS of $1.13 vs. $0.87, $0.26 above consensus, driven by a top-line beat of $120 million or 4.3%. During Q1, organic currency-neutral sales increased 5% Y/Y, led by growth in Scent, Health & Biosciences, and Nourish. Q1 volume was up mid-single digits Y/Y and continued to improve sequentially across nearly every business. The adj. EBITDA margin expanded 310 bps Y/Y to 19.9%, driven by higher volumes and cost improvements. We think most of the headwinds are behind IFF, following the announced Pharma business sale and dividend cut. Investors can now look forward to strong earnings growth amid a return to positive volume growth and margin expansion.