KeyBanc on Ingredion, Undervalued Jumps PT

In a research note released Tuesday, KeyBanc analyst Jagdale reiterated a Buy rating on Ingredion Incorporated

and increased his price target from $75.0 to $95.0. The analyst reiterated the rating, increased the price target, and remains positive due to recent meetings with the company's executive management. He continued to state, that investors are “significantly undervaluing” the company's specialty business opportunity. The company's specialty business is currently generating approximately one 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, he expects INGR to benefit from multiple expansion. Shares of the company are up two percent on Monday and are up 13 percent year-to-date.