Ingredion stock outlook brightens as Barclays highlights EPS guidance boost

On Friday, Barclays upgraded Ingredion (NYSE: NYSE:) stock from Equalweight to Overweight, with a new price target set at $145.00, up from the previous target of $122.00.

The upgrade follows Ingredion’s recent announcement of an approximate 5% increase in its adjusted EPS guidance for the fiscal year 2024 at the midpoint.

Ingredion has demonstrated robust profitability at the start of the year, successfully expanding its margins even as sales have declined. Barclays anticipates that Ingredion’s performance will continue to improve in the second half of 2024 and into early 2025, driven by expected volume recovery.

The firm also expects to continue benefiting from its cost savings initiatives and leveraging fixed cost absorption to enhance its bottom line. These measures are part of Ingredion’s ongoing strategy to boost profitability amidst varying market conditions.

Furthermore, Barclays sees a promising future for Ingredion’s Texture & Healthful Solutions segment. The segment is projected to experience margin growth as the company’s investments in capacity expansion begin to yield results. This strategic move is aimed at strengthening Ingredion’s position in the market and enhancing its long-term financial performance.

In summary, Barclays’ positive outlook on Ingredion is based on the company’s raised EPS guidance, solid profitability, margin expansion, and strategic investments aimed at driving future growth. The revised price target of $145.00 reflects this optimistic assessment of Ingredion’s financial prospects.

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