Overlooked Stock: DAR Upgrade

Company Overview - Darling Ingredients is a food stock company that transforms animal byproducts into feed ingredients, food ingredients, and fuel like biodiesel [2][3] - The company operates in various industries, including food service, pharmaceuticals, and industrial feed and fertilizers [3] Stock Performance - Darling Ingredients' stock has increased approximately 31% year-to-date, indicating a significant upward movement [4] - Barrett raised the price target for Darling Ingredients from $36 to $62, upgrading the stock rating from neutral to outperform [5] Financial Catalysts - The company recently received an additional $50 million in production tax credits, which is nearly 50% of its net income of $108 million from the previous year [6][7] - The production tax credits are expected to positively impact earnings estimates for Darling Ingredients moving forward [8] Market Trends - The food stock sector, including companies like Tyson and Archer Daniel Midland, has been experiencing a resurgence, potentially linked to a weaker US dollar and improved export trade balance [10][11] - The recent performance of food stocks may be part of a defensive rotation into staples, food, energy, and materials, driven by institutional investment [14]