KeyBanc Increases PT On Ingredion

In a research note released Tuesday, KeyBanc analyst Akshay Jagdale reiterated a Buy rating on Ingredion (NYSE: INGR) and increased his price target from $75 to $95.

The analyst remains positive due to recent meetings with the company's executive management. Jagdale continued to state that investors are “significantly undervaluing” the company's specialty business opportunity.

The company's specialty business is currently generating approximately $1 billion in annual sales. This represents nearly 16 percent of the company's entire revenue and is expected to grow at an organic rate of 10 percent over the course of the next few years.

“We came away from meetings w/ a greater sense that mgmt. will look towards acquisitions to accelerate specialty sales growth.”

In addition, Jagdale expects Ingredion to benefit from multiple expansion.

Shares of Ingredion are up more than one percent on Tuesday and are up 13 percent year-to-date.