Analyst Andrew Strelzik of BMO Capital maintained a Buy rating on Darling Ingredients, retaining the price target of $45.00.
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Andrew Strelzik’s rating is based on a combination of factors that suggest a promising future for Darling Ingredients. Despite the current sluggish operating environment and the lowered 2025 EBITDA estimates, Strelzik emphasizes the potential for a more favorable setup in 2026. This optimism is driven by anticipated policy changes that are expected to enhance the profitability trajectory for Darling Ingredients, particularly with the expected increase in mandated biomass-based diesel volumes and improved biofuels economics.
Strelzik acknowledges the challenges faced by the industry, such as pressured margins and uncertain pacing through 2025. However, he highlights the company’s strong fundamentals and the potential for accelerated EBITDA growth in the medium to long term. With shares trading below historical averages and the expectation of improved policy clarity, Strelzik views this as an attractive entry point for investors, reinforcing his Buy rating for Darling Ingredients.
Strelzik covers the Consumer Cyclical sector, focusing on stocks such as Domino’s Pizza, Chipotle, and Brinker International. According to TipRanks, Strelzik has an average return of 5.6% and a 55.83% success rate on recommended stocks.
In another report released yesterday, Raymond James also maintained a Buy rating on the stock with a $60.00 price target.