Bullish Outlook for Darling Ingredients: Policy Changes and Growth Catalysts Drive Buy Rating

BMO Capital analyst Andrew Strelzik has maintained their bullish stance on DAR stock, giving a Buy rating on April 23.

Andrew Strelzik has given his Buy rating due to a combination of factors that highlight the potential for Darling Ingredients to improve its financial performance. Despite a challenging first quarter, the company has maintained its EBITDA guidance for 2025, suggesting confidence in its ability to recover and achieve its targets. Strelzik notes that the first quarter’s difficulties do not alter the core aspects of the company’s bullish outlook, which remains intact.
Key drivers for this positive outlook include anticipated policy changes that could significantly benefit Darling Ingredients. The expected increase in biomass-based diesel requirements and updates to the Low Carbon Fuel Standard are likely to enhance the company’s fundamentals by increasing demand for its products. Additionally, the potential for higher-margin contributions from sustainable aviation fuel and the company’s vertically integrated model are seen as long-term growth catalysts. These factors, combined with an attractive entry point for investors, underpin Strelzik’s Buy rating.

In another report released on April 23, Raymond James also maintained a Buy rating on the stock with a $60.00 price target.