Darling Ingredients, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Ben Kallo from Robert W. Baird downgraded the rating on the stock to a Hold and gave it a $36.00 price target.
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Ben Kallo has given his Hold rating due to a combination of factors including the recent Q2 results of Darling Ingredients, which fell short of expectations, and a revised full-year outlook for 2025. The outlook was impacted by uncertainties surrounding the small refiner’s exemption and challenges in the RIN market for renewable fuels. These factors have contributed to a lack of confidence in the company’s near-term visibility.
Moreover, the global commodities environment remains volatile due to changes in tariffs and tax credits, further complicating the ability to provide accurate guidance. While Darling Ingredients’ leverage has improved, and the stock may appear undervalued, the analyst remains cautious. The potential for positive or negative catalysts, such as news on the small refiner’s exemption or the final RVO, adds to the uncertainty, leading to the decision to maintain a Neutral stance until conditions improve.
According to TipRanks, Kallo is a 3-star analyst with an average return of 1.3% and a 42.74% success rate. Kallo covers the Consumer Cyclical sector, focusing on stocks such as Tesla, QuantumScape, and Rivian Automotive.
In another report released on July 18, TD Cowen also maintained a Hold rating on the stock with a $34.00 price target.