J.P. Morgan Lowers PT To $61 On IFF

J.P. Morgan has lowered its price target on International Flavors and Fragrances IFF from $65 to $61 to coincide with lowered estimates on the company. In the report, J.P. Morgan states, “We are trimming our 2011 EPS estimate from $3.90 to $3.85 to reflect higher than previously forecasted raw material costs likely leading to margin pressure in 3Q. Raw material costs were 12% higher in 2Q:11 and prices rose 2%. IFF would have needed 5-6% higher prices to offset these headwinds. Margin comparisons should become easier in 4Q:11… We are establishing a Dec 2012E price target of $61. Our previous December 2011 price target was $65.” J.P. Morgan remains Neutral on the stock. IFF closed at $55.95 yesterday.