Update shared on08 Oct 2025
Fair value Decreased 1.57%Narrative Update on Ingredion
Analysts have lowered their price target for Ingredion from $144 to $130 per share. This reflects a modest downward revision due to updated profit margin and valuation expectations.
Analyst Commentary
Recent research coverage provides updated perspectives on Ingredion’s prospects, highlighting both areas of optimism and points of caution as analysts assess the company’s execution and valuation.
Bullish Takeaways
- Bullish analysts note that Ingredion has demonstrated steady operational performance, supporting stability in its earnings outlook.
- They see ongoing cost management initiatives as a potential driver for improved profit margins over the longer term.
- Resilient demand in core customer segments is viewed as a positive indicator for future revenue streams.
Bearish Takeaways
- Bearish analysts remain cautious about the softer profit margin trajectory reflected in the new price target.
- They highlight continued uncertainties in margin expansion and competitive market conditions that may limit valuation upside.
- There are concerns that near-term catalysts for earnings growth could be constrained, weighing on investor sentiment.
What's in the News
- Ingredion issued updated full-year 2025 guidance, projecting reported EPS in the range of $11.25 to $11.75 and mid-single-digit growth in operating income. Net sales are expected to remain flat, with T&HS volume growth offset by lower price mix and foreign exchange impacts (Key Developments).
- The company provided third quarter 2025 guidance, forecasting net sales to be flat to up low single digits and operating income to be flat to down low single digits compared to the same quarter last year (Key Developments).
- Ingredion’s board of directors declared a quarterly dividend of $0.82 per share, marking the 11th consecutive year of a third quarter dividend increase. The dividend is payable on October 21, 2025 (Key Developments).
- The company has completed the repurchase of 3,062,000 shares, representing 4.68% of shares outstanding, for $369.76 million under its ongoing buyback program as of August 1, 2025 (Key Developments).
- Ingredion announced an upcoming Analyst/Investor Day, offering further insights into strategic direction and company performance (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased slightly from $148.67 to $146.33 per share.
- Discount Rate remains unchanged at 6.78%.
- Revenue Growth projection has edged down marginally from 2.05% to 2.03%.
- Net Profit Margin expectation has risen from 8.95% to 9.57%.
- Future P/E (Price to Earnings) multiple has declined from 15.86x to 14.61x.
Disclaimer
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