In a report released today, Jason Gabelman from TD Cowen maintained a Hold rating on Darling Ingredients, with a price target of $34.00.
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Jason Gabelman has given his Hold rating due to a combination of factors impacting Darling Ingredients’ financial outlook. The company’s projected EBITDA for the third quarter of 2025 has been revised downward from $273 million to $236 million, primarily due to weaker earnings from Diamond Green Diesel (DGD) and limited upside from the Feed segment. This adjustment reflects ongoing pressure on DGD margins, which are expected to persist into the fourth quarter of 2025, resulting in a full-year EBITDA forecast of less than $1 billion, falling short of the company’s guidance of $1.05 billion to $1.1 billion.
Furthermore, the anticipated pressure on DGD may continue until regulatory uncertainties, such as the finalization of the 2026 Renewable Volume Obligation (RVO) and the 2024 Renewable Identification Numbers (RINs), are resolved. Additionally, potential cost increases from tariffs on collagen imports from Brazil could impact future profitability. Despite previous guidance adjustments, the market remains cautious about fully pricing in management’s projections, contributing to the Hold rating as investors await more concrete results and improvements in DGD margins.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $33.00 price target.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DAR in relation to earlier this year.