Assessing Darling Ingredients (DAR) Valuation After Fresh Analyst Upgrades and Renewed Investor Optimism

Darling Ingredients (DAR) just caught a wave of bullish attention after TD Cowen upgraded the stock to Buy, with Jefferies and B of A Securities echoing upbeat views that are drawing fresh investor interest.

See our latest analysis for Darling Ingredients.

That bullish backdrop is arriving just as momentum starts to rebuild, with a roughly mid teens 3 month share price return off a weak base and a modest positive 1 year total shareholder return. This suggests sentiment is stabilising rather than roaring ahead.

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With analysts seeing nearly 30 percent upside and our models hinting at an intrinsic value roughly double the current price, the key question now is clear: Is Darling Ingredients a genuine bargain, or is future growth already priced in?

Most Popular Narrative: 22.2% Undervalued

With the narrative fair value at 47 dollars versus the last close of 36 dollars and 55 cents, the valuation case leans clearly in favor of upside potential.

Policy changes favoring U.S.-sourced renewable diesel feedstocks (higher domestic fat prices, reduced foreign competition) and increasing U.S. biofuel mandates are expected to structurally expand demand and improve pricing power in Darling's Feed and Fuel segments, which should drive higher revenue and margin expansion through 2026 and beyond.

Read the complete narrative.

Curious how steady top line assumptions, big margin expansion, and a very different future earnings base can still point to this higher valuation? The narrative walks through the numbers, step by step, and reveals how those projections translate into today’s fair value.

Result: Fair Value of $47 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory uncertainty around biofuel mandates and persistent margin pressure in renewable diesel could quickly undermine the upside implied by today’s valuation.

Find out about the key risks to this Darling Ingredients narrative.

Another Lens on Value

While our models point to a fair value near 47 dollars, the earnings multiple tells a tougher story. At about 53.6 times earnings, versus 20.5 times for the US Food industry and a fair ratio of 59.4 times, the stock already assumes a sharp profit rebound. Is that rebound realistic, or just hopeful?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Darling Ingredients Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view of Darling in minutes: Do it your way.

A great starting point for your Darling Ingredients research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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