Gabelli Comments On Int'l Flavors & Fragrances Analyst Day

In a report published by Gabelli, Int'l Flavors & Fragrances IFF overall market, its strategy and opportunities for growth was reviewed during its analyst day in NYC yesterday.

Gabelli said that IFF expects 1Q and 2011 results to be in-line with long-term targets of 4%+ organic revenue and 10% earnings per share growth. “ Input costs will continue to put pressure on margins, while the 2H should have the full benefit of pricing, mix and cost savings ($17-20 mm) to offset it. Going into 2011, IFF faces difficult comparisons, however given the strong level of new product wins, favorable impact from currency and restructuring in European fragrance, we expect earnings of $2.80 per share. Shares trade at approx 10x 2011E EBITDA and 15.3x P/E. PMV of $84 in 2012.”

Int'l Flavors & Fragrances closed yesterday at $57.89.