UBS reiterates Darling Ingredients stock rating on Q3 estimates
UBS maintained a Buy rating and $88 price target for Darling Ingredients (DAR), citing undervaluation and adjusted Q3 2026 EBITDA estimates. DAR's stock has risen 101% in the past year, trading at $61.26. UBS expects lower DGD utilization and adjusted segment earnings. DAR's Q2 2026 EPS beat estimates, but revenue missed. Moody's affirmed DAR's Ba1 rating with a stable outlook.
How this was made
The 30-second read
Why it matters
The rating upgrade and higher target may attract new buying, but revenue shortfall and commodity price volatility remain risks.
Market read
Analyst upgrade with fresh earnings guidance offers a near‑term trading catalyst for DAR.
What to watch
Potential regulatory changes in renewable diesel subsidies could affect future earnings.
Background
UBS provided an updated earnings estimate and price target for Darling Ingredients, noting improved segment performance and a stronger renewable diesel market.
Ticker impact
UBS reiterated a Buy rating and raised the price target to $88 while updating Q3 2026 EBITDA estimate to $553 million.
likely upward pressure as investors price in the higher target and improved earnings outlook
Analyst upgrade with a concrete price target and fresh earnings estimate provides a clear catalyst for buying interest.
Market effects
Boosts sentiment for the renewable fuels and specialty chemicals sector as higher fat prices and biofuel demand improve outlook.
U.S. market may see modest buying in related biofuel and waste‑to‑energy stocks.
Limited to investors tracking ESG‑focused commodity processors.
Counterpoint
The revenue miss and reliance on volatile biofuel markets could limit upside despite the higher target.
Key entities
- companyDarling Ingredients
U.S. specialty chemicals and renewable fuels producer (ticker DAR).
- analystUBS
Investment bank that issued the rating and target.
