International Flavors & Fragrances Sets Long-Term Goals During Investor Meeting, Oppenheimer Maintains Perform

Oppenheimer has published a research report on International Flavors & Fragrance IFF after the company hosted an investor meeting and displayed its long-term goal plans.

In the report, Oppenheimer writes "In its Investor Meeting, IFF set long-term goals to grow local currency sales by 4-6%, operating profit by 7-9%, and EPS above 10%, the latter unchanged but the sales target moderately better than previous 4%+. The company's strategic review revealed that 15% of the portfolio has negative economic profit, and 20% is neutral. IFF's "aspirational goal" is to achieve positive economic profit for 100% of the portfolio, a potential $50M improvement, primarily through pricing, margin opportunities, and innovation, but divestitures are also possible. Key growth opportunities are in emerging markets, and in health & wellness and natural products. We raise our 2011 and 2012 estimates as we raise margins, reflecting the company's confidence in approaching 18% operating margin by 2011."

Oppenheimer maintains its Perform rating on International Flavors & Fragrance, which closed yesterday at $57.89.