BofA Securities initiated coverage on Darling Ingredients Inc. (NYSE: DAR) with a Buy rating and a price target of $45.00, implying roughly 40% upside.
The firm described Darling as a vertically integrated producer of biofuels, biofuel feedstocks, and food ingredients, and said the company was well positioned to benefit from recent U.S. policy changes supporting renewable diesel and biodiesel demand.
Analysts noted that rising Renewable Identification Numbers (RIN) prices could act as a tailwind for Darling’s Renewable Energy segment, while balance sheet deleveraging and potential restructuring within the Food Ingredients division could unlock additional value.
BofA said its bullish stance reflected both operational upside and a favorable regulatory backdrop that could expand margins across Darling’s portfolio.
