UPDATE: BB&T Capital Markets Initiates Coverage On Sensient Technologies On Good Investment Opportunity

In a report published Tuesday, BB&T Capital Markets analyst Brett M. Hundley initiated coverage on Sensient Technologies Corporation (NYSE: SXT) with a Buy rating and $81.00 price target.

In the report, BB&T Capital Markets noted, "We are initiating coverage of Sensient with a Buy rating and $81 price target. As one of the larger players in food colors and flavors, Sensient has an opportunity to leverage historical relationships and take advantage of new consumer trends moving towards natural ingredients. Our favorable view is based upon the three M's: Mix, Margins, and Multiple.

"Sensient is in the midst of an internal cost savings plan and flavors segment go-to-market refresh, and this should drive considerable earnings and cash flow improvement in years ahead. Its earnings multiple lags this reality considerably, however, trailing its peer group by a distinct margin. Thus, we view SXT as a nice opportunity for investors to take advantage of the disconnect."

Sensient Technologies closed on Monday at $66.40.