Wide-Moat Int'l Flavors and Fragrances' Shares Offer Strong Upside Trading in 5-Star Territory

International Flavors and Fragrances' shares have underperformed since the start of 2022 as cost inflation weighed on profit growth. While the stock rebounded during the fourth quarter of 2022, shares fell 19% on Feb. 8, when the firm released its fourth-quarter earnings and cut 2023 guidance due to declining volumes. While we lowered our near-term estimates, we view the selloff as an overreaction to lower near-term profits.