Brokerages cut PT on Darling Ingredients over renewable fuel margin pressures

Darling Ingredients

10/10/2023 12:03

** Brokerage Piper Sandler cuts PT on sustainable
food-processing company Darling Ingredient  DAR.N  to $89 from
$97, citing a drop in feed volumes and weak renewable diesel
margins 
    ** The new PT still represents an ~88% upside on the stock's
last close of $47.28
        ** Brokerage lowers EBITDA estimate for renewable diesel
producer Diamond Green Holdings, which is jointly owned by
Darling Ingredient and Valero Energy Corp  VLO.N 
        ** Cuts estimate to $105 mln or $0.78/gal from $195 mln
or $1.36/gal, on headline margin pressure, hedging losses and a
fire causing additional downtime 
  
    ** Brokerage Stephens also cuts PT on DAR to $55 from $65,
representing a ~16% upside on last close
    ** Thirteen of 15 brokerages rate the stock "buy" or higher
and two "hold"; their median PT is $89 - LSEG data
    ** YTD, stock down 24.5% through last close

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))