--- title: "Darling Ingredients (DAR) Could Be 16% Undervalued Following Analyst Upgrades" type: "News" locale: "en" url: "https://longbridge.com/en/news/296691413.md" description: "Darling Ingredients (DAR) is considered 16.3% undervalued, with a fair value estimate of $78.58 against its recent close of $65.74. This valuation is driven by analyst upgrades, strong short-term momentum, and policy changes favoring U.S.-sourced renewable diesel feedstocks. While the stock has seen significant year-to-date gains, risks include policy uncertainty and higher feedstock costs. The analysis suggests potential upside through 2026 based on revenue growth and margin expansion." datetime: "2026-08-23T03:35:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296691413.md) - [en](https://longbridge.com/en/news/296691413.md) - [zh-HK](https://longbridge.com/zh-HK/news/296691413.md) generator: "portal-rs" --- # Darling Ingredients (DAR) Could Be 16% Undervalued Following Analyst Upgrades Recent analyst upgrades and higher earnings estimates have pushed Darling Ingredients (DAR) into the momentum spotlight. The stock has drawn fresh attention after receiving a top ranking from equity research firms. See our latest analysis for Darling Ingredients. Despite a 3.1% 1 day share price decline and a 1.9% 7 day share price pullback, Darling Ingredients has a 30 day share price return of 5.2% and a year to date share price return of 74.7%. The 1 year total shareholder return of 88.8% contrasts with a weaker 5 year total shareholder return that is down 15.2%, which suggests shorter term momentum is building even as longer term holders have seen mixed outcomes. If you want to see what else is gaining attention alongside Darling Ingredients, this could be a good moment to scan a screener of 19 top founder-led companies Bulls point to Darling Ingredients’ strong recent returns and analyst enthusiasm, while bears highlight weaker 5 year results and questions about the sustainability of its momentum. Which way does the current valuation evidence lean next? ## Most Popular Narrative: 16.3% Undervalued The most followed Darling Ingredients narrative anchors on a fair value of $78.58 versus the last close of $65.74, which points to meaningful upside in the model and puts the recent analyst optimism into clearer context. > *Policy changes favoring U.S.-sourced renewable diesel feedstocks (higher domestic fat prices, reduced foreign competition) and increasing U.S. biofuel mandates are expected to structurally expand demand and improve pricing power in Darling's Feed and Fuel segments, which should drive higher revenue and margin expansion through 2026 and beyond.* *Read the complete narrative.* Read the complete narrative. Want to see what is built into that $78.58 fair value for Darling Ingredients? The narrative leans on steady top line progress, higher margins, and a future earnings multiple that mirrors today’s sector benchmark. It examines how those pieces combine once they are discounted back using a single required return and layered over modest share count changes. The fair value view here rests on analyst assumptions about revenue growth, margin improvement and earnings expansion over several years, all brought back using a 7.24% discount rate and a P/E profile aligned with the wider US Food group. The key question for investors is whether that path for Darling Ingredients feels realistic or too demanding based on personal expectations. **Result: Fair Value of $78.58 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, the Darling Ingredients narrative still faces clear risks, including policy uncertainty around renewable fuel credits and pressure from higher feedstock costs that could squeeze margins. Find out about the key risks to this Darling Ingredients narrative. ## Next Steps With sentiment on Darling Ingredients finely balanced between risks and rewards, this is a good time to review the underlying data and decide where you stand. To see the full picture of both concerns and potential upsides, take a closer look at the 4 key rewards and 2 important warning signs. ## Looking for more investment ideas beyond Darling Ingredients? If you only focus on Darling Ingredients, you could miss out on other opportunities. Use a targeted screener to spot stocks that better match your goals. - Explore potential opportunities with a curated list of quality stocks that appear mispriced by the market through the 48 high quality undervalued stocks. - Strengthen income potential by focusing on companies with higher yields using the 12 dividend fortresses. - Prioritise resilience by scanning companies with lower risk profiles and stronger fundamentals via the 75 resilient stocks with low risk scores. *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [DAR.US](https://longbridge.com/en/quote/DAR.US.md) ## Related News & Research - [Joseph Manzi Sells 1,000 Shares of Darling Ingredients (NYSE:DAR) Stock](https://longbridge.com/en/news/296271839.md) - [Darling Ingredients EVP Chief Strategy Officer Sandra Dudley disposes of common shares worth $666,180.54](https://longbridge.com/en/news/296266160.md) - [Advisors Preferred LLC Makes New Investment in Darling Ingredients Inc. $DAR](https://longbridge.com/en/news/296580346.md) - [XCF Global ships 55,000 gallons/day of renewable diesel from Reno facility](https://longbridge.com/en/news/296222981.md) - [Darling Ingredients Insiders Sold Shares Worth Over $1.1M](https://longbridge.com/en/news/295982069.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**