Ingredion's Growth Strategy To Please Health-Conscious Consumers Can Make It A Winner: Analyst

Oppenheimer analyst Kristen Owen initiated coverage on Ingredion Inc INGR with an Outperform rating and a price target of $120.

The analyst believes Ingredion's investments in sugar reduction, plant-based protein, and specialty texturizers bode well with consumer's focus on health and wellness and mindful eating. This underpins the company's migration to specialty from commodity, thereby driving ROIC.

The analyst sees revenue diversification, enhancing pricing/margin control, competitive differentiation, and higher customer intimacy as aiding the company's growth prospects.

Owen expects the company's volume recovery to lag modestly but sees near-term affordability alignment facilitating margin expansion.

The analyst estimates revenue and adjusted EPS of $8.4 billion and $8.91 for FY23, $8.7 billion and $9.60 for FY24, and $8.9 billion and $10.24 for FY25, respectively.

Also Read: Ingredion Q2: Earnings Miss, Softer Volume Demand, Dividend Boost & More

Price Action: INGR shares are trading higher by 0.89% at $98.44 on the last check Friday.