$DAR

UBS raises Darling Ingredients stock price target on strong earnings

UBS raised Darling Ingredients' (DAR) price target to $88 from $78, citing strong Q2 2026 earnings with adjusted EBITDA of $742M. The company's shares have surged over 100% in the past year. Moody's affirmed its Ba1 rating with a stable outlook, noting improved earnings and credit metrics. Analysts expect continued strength in EBITDA and free cash flow.

Original reporting
Published Sep 22, 2026, 11:01 AM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Sep 22, 2026, 11:27 AM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
AlphAI market briefFinancial news
Primary signal
$DAR
Bullish
medium confidence
Mentioned
$DAR
Relevance
6/10
AlphAI data visualization · based on investing.com
Decision brief

The 30-second read

$DARBullishMed
01

Why it matters

Analyst upgrade likely to attract buying interest and support price gains.

02

Market read

The new target may drive short‑term buying pressure and influence sector peers.

03

What to watch

Potential regulatory changes in renewable diesel subsidies could affect future margins.

Relevance 6/10Novelty 6/10Timing: published today

Background

UBS upgraded Darling Ingredients after its Q2 2026 earnings beat EPS estimates, though revenue fell short of forecasts.

Company-level read

Ticker impact

$DARBullishMedium confidence
Context

UBS raised its price target on Darling Ingredients to $88 from $78, citing record Q2 earnings and improved leverage.

Expected impact

Potential price appreciation toward the new $88 target.

Evidence & confidence

The price target increase reflects confidence in earnings momentum and balance sheet improvement.

Market effects

Positive signal for the renewable fuels and waste oil processing sector.

May boost investor sentiment toward US mid‑cap industrials.

Limited to investors tracking ESG‑linked commodity processors.

Counterpoint

The price target raise may be premature given revenue miss versus estimates.

Key entities

  • Darling Ingredients Inc.

    Renewable fuels and waste oil processor.

  • UBS

    Investment bank providing the price target raise.

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Darling Ingredients (DAR) reported Q2 2026 earnings of $2.41 per share, up from 8 cents a year earlier. 2026 earnings estimates have risen 55.1%. DAR trades at a discount to its sub-industry and historical median, with Q2 core EBITDA up 70.4% YoY. However, rising costs and capacity constraints pose risks. DAR has a Zacks Rank #1 (Strong Buy).

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Can DAR's 12.8% Weekly Rally Continue as Core Earnings Strengthen?

Darling Ingredients Inc. (DAR) shares rose 12.8% in a week, driven by improved core ingredients profitability and renewable-fuel economics. Q2 2026 core EBITDA was $352.5M, up from $206.9M a year earlier. Management expects Q3 EBITDA of $325-$340M. Earnings estimates have risen significantly, but capacity constraints and higher costs pose risks. DAR has a Zacks Rank #1 (Strong Buy).

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Can Renewable Fuel Policy Keep DAR's DGD Earnings Strong Through 2027?

Darling Ingredients Inc. (DAR) reports strong second-quarter 2026 earnings from Diamond Green Diesel (DGD), with adjusted EBITDA rising to $389.2 million. The company expects supportive renewable fuel policies and tight RIN markets to sustain DGD margins through 2027, though profitability remains exposed to market inputs like diesel prices and feedstock costs.

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A Look Back at Ingredients, Flavors & Fragrances Stocks’ Q2 Earnings: Darling Ingredients (NYSE:DAR) Vs The Rest Of The Pack

Ingredients, flavors, and fragrances stocks reported mixed Q2 earnings, with revenues missing estimates by 2.4%. Darling Ingredients (DAR) reported $1.72B revenue, up 16.4% YoY, beating estimates. Archer-Daniels-Midland (ADM) reported $22.68B revenue, up 7.2% YoY, outperforming estimates. International Flavors & Fragrances (IFF) reported $1.95B revenue, down 29.3% YoY, missing estimates. Ingredion (INGR) reported $1.85B revenue, flat YoY, topping estimates. Bunge Global (BG) reported $24.04B rev

$DARMed

Moody’s affirms Darling Ingredients rating, revises outlook

Moody’s affirmed Darling Ingredients' (DAR) Ba1 rating and revised its outlook to stable from negative, citing improved earnings and credit metrics. EBITDA rose 75% to $1.6B for the 12 months ended July 4, 2026, with debt-to-EBITDA improving to 2.0x. The company expects net debt to be at or below $3B by fiscal 2026-end. Moody’s notes Darling’s strong market position but highlights market volatility and uncertainties.