Jason Gabelman, an analyst from TD Cowen, maintained the Hold rating on Darling Ingredients (DAR – Research Report). The associated price target was lowered to $37.00.
Jason Gabelman has given his Hold rating due to a combination of factors affecting Darling Ingredients’ financial outlook. The primary reason for the Hold rating is the reduction in expected earnings, particularly in the DGD segment, where EBITDA projections have been significantly lowered. This adjustment is attributed to weakened LCFS credits and the high premiums at which waste oils are trading, which impact the company’s profitability.
Additionally, regulatory uncertainties play a crucial role in this rating. Investors are likely to remain cautious until there is clarity on key regulatory developments, such as the passage of LCFS amendments and the monetization of 45Z credits. The stock’s current trading multiples also suggest limited upside potential, aligning with historical trading patterns. Consequently, the price target has been reduced to $37, reflecting these challenges and uncertainties.
According to TipRanks, Gabelman is a 4-star analyst with an average return of 5.5% and a 49.09% success rate. Gabelman covers the Energy sector, focusing on stocks such as Equinor ASA, Calumet Specialty Products, and Cheniere Energy.