BofA starts Darling Ingredients at Buy, sees 40% upside

As previously reported, BofA initiated coverage of Darling Ingredients (DAR) with a Buy rating and $45 price target which the firm notes represents about 40% upside. The firm thinks the biofuel, biofuel feedstock, and food ingredients company is poised to benefit from federal policy changes to bolster demand for renewable diesel and higher-cost biodiesel, which it see driving increased prices for renewable identification numbers. The firm thinks current margins and the share price have bottomed as the EPA is set to grow demand in 2026/27, the analyst added.