IFF Stock Forecast & Price Target

International Flavors & Fragrances (IFF) has demonstrated a significant improvement in its financial performance, with the Return on Capital (ROC) rising from 2.77% to 5.32% over the last twelve months, signaling enhanced operational efficiency and profitability. The company also reported a year-over-year sales increase in its taste segment of 3%, with a more robust 6% growth on a currency-neutral basis, totaling $631 million, driven by strong demand across all regions. Furthermore, forecasts project an additional increase in ROC to 6.37% over the next twelve months, indicating a positive trajectory for the company's financial health.

International Flavors & Fragrances is projected to experience a 5.56% decline in revenue over the next twelve months, with anticipated sales decreasing to approximately $10.68 billion following the divestiture of several key businesses, including Pharma Solutions and specific soy product lines. Despite the company maintaining a net sales revenue of $11.30 billion for the 12 months ending June 2025, this figure represents minimal year-over-year growth, indicating stability rather than growth potential. The ongoing divestiture activities and stagnant revenue raises concerns about the firm’s ability to meet long-term financial objectives and market expectations.