Hold Rating for Darling Ingredients Amid Earnings Shortfall and Regulatory Uncertainty

TD Cowen analyst Jason Gabelman maintained a Hold rating on Darling Ingredients (DAR – Research Report) today and set a price target of $34.00.

Jason Gabelman has given his Hold rating due to a combination of factors impacting Darling Ingredients. The company’s first-quarter results fell short, even with a positive inventory adjustment, which casts doubt on its ability to meet its full-year 2025 EBITDA guidance. Despite maintaining its guidance, the lack of transparency regarding the first-quarter miss and an inconsistent history of meeting projections make it challenging to fully trust the company’s outlook.
Additionally, the reduction in the price target to $34 reflects concerns about lower earnings from Diamond Green Diesel (DGD) due to diminishing waste oil premiums, which could further compress margins. Investors are likely to remain cautious until there is more clarity on regulatory developments, such as the 2026 Renewable Volume Obligation (RVO) and the Low Carbon Fuel Standard (LCFS) amendment. These uncertainties, combined with the company’s current trading multiples, support the Hold recommendation.