Analyst Note| Seth Goldstein, CFA |
On Sept. 16, International Flavors & Fragrances released updated guidance for higher sales growth on strong demand. However, it also lowered its EBITDA margin outlook due to higher raw materials and logistics costs. Management expects to be able to pass on the higher costs through price increases by the end of the year. We think IFF will be able to increase prices, and as such, our long-term outlook is intact. Having updated our model to reflect the near-term changes, we maintain our $140 fair value estimate. Our wide moat rating is also unchanged.