UBS Maintains Buy Rating as Darling Ingredients (DAR) Faces Tariff and Biofuel Uncertainty

Core Insights - Darling Ingredients Inc. is recognized as one of the top sustainability stocks, with UBS maintaining a Buy rating and a price target of $58, projecting EBITDA of $875–900 million for fiscal year 2025 from its main ingredients business [1][2] Financial Performance - In the third quarter, Darling reported a net income of $19.4 million, which was below analyst expectations of $0.25 per share, despite achieving higher-than-expected revenue of $1.6 billion compared to the forecast of $1.51 billion [2] Market Conditions - The U.S. biofuel market is currently facing challenges due to uncertainty and delays regarding the Renewable Volume Obligation (RVO) verdict, although there is a rebound in export protein demand with more stable pricing trends [3] - Darling's poultry protein products are experiencing difficulties due to tariff implications affecting the China and Asia-Pacific markets, which poses challenges for this segment of the business [3] Company Overview - Darling Ingredients operates globally in the bio-nutrient solutions and renewable energy sectors, with its operations divided into three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients [4]