Analysts Offer Insights on Consumer Goods Companies: Callaway Golf (NYSE: ELY), Ingredion (NYSE: INGR) and Ingevity (NYSE: NGVT)

By Jason Carr

There’s a lot to be optimistic about in the Consumer Goods sector as 3 analysts just weighed in on Callaway Golf (NYSE: ELY), Ingredion (NYSE: INGR) and Ingevity (NYSE: NGVT) with bullish sentiments.

Callaway Golf (NYSE: ELY)

In a report released today, Casey Alexander from Compass Point upgraded Callaway Golf (NYSE: ELY) to Buy. The company’s shares closed yesterday at $9.87.

According to TipRanks.com, Alexander is a 1-star analyst with an average return of -3.0% and a 53.3% success rate. Alexander covers the Financial sector, focusing on stocks such as TriplePoint Venture Growth, Fifth Street Finance, and Medley Capital Corp.

Currently, the analyst consensus on Callaway Golf is Strong Buy and the average price target is $16, representing a 62.1% upside.

In a report released today, Jefferies also reiterated a Buy rating on the stock with a $16 price target.
Ingredion (NYSE: INGR)

In a report released yesterday, Akshay Jagdale from Jefferies reiterated a Buy rating on Ingredion (NYSE: INGR), with a price target of $152. The company’s shares closed yesterday at $129.19.

Jagdale said:

“We continue to see further upside driven by earnings growth. While we expect earnings growth to moderate in 2017 relative to a robust 2016 (~20% y/y EPS growth), we believe HSD to LDD earnings growth is possible over the next several years driven by LDD Specialty EBIT growth, LSD to MSD growth in the Core business, and capital deployment (M&A and/or buybacks). We believe the risk/reward remains attractive and are reiterating our Buy rating & $152 PT. Solid 3Q beat driven by continued outperformance in NA. INGR reported 3Q16 adj. EPS of $1.96, ~12% above our estimate and ~10% above consensus. The beat was primarily driven by NA (segment EBIT up 23% y/y) owing to solid performance in both the Specialty and Core businesses. Consolidated EBIT was $0.10/shr better than our estimate while below the line items contributed $0.11 to the beat.”

According to TipRanks.com, Jagdale is a 4-star analyst with an average return of 5.3% and a 53.9% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Keurig Green Mountain, Amplify Snack Brands, and McCormick & Company.

Currently, the analyst consensus on Ingredion is Moderate Buy and the average price target is $152, representing a 17.7% upside.

In a report issued on November 2, Credit Suisse also reiterated a Buy rating on the stock with a $155 price target.
Ingevity (NYSE: NGVT)

In a report released yesterday, Daniel Rizzo from Jefferies reiterated a Buy rating on Ingevity (NYSE: NGVT), with a price target of $57. The company’s shares closed yesterday at $44.15, close to its 52-week high of $48.30.

Rizzo wrote:

“Q3 EPS of $0.64 was $0.03 above consensus and $0.03 below our estimate. 2016E EBITDA projections raised by $7m at the midpoint, with a range of $192m-$197m. Increased adoption of the “California Standard” will support 14% EPS CAGR through 2020E.”

According to TipRanks.com, Rizzo is a 3-star analyst with an average return of 5.2% and a 42.9% success rate. Rizzo covers the Basic Materials sector, focusing on stocks such as Minerals Technologies Inc., American Vanguard Corp., and Quaker Chemical Corp.

Currently, the analyst consensus on Ingevity is Strong Buy and the average price target is $50, representing a 13.3% upside.

In a report issued on November 2, Oppenheimer also assigned a Buy rating to the stock with a $50 price target.