International Flavors & Fragrances (IFF) is set for a volume driven year in 2026, with Oppenheimer seeing favorable market forces aligning with the company's turnaround strategy.

The investment firm said in a Friday note that the company is transitioning from stabilizing to strengthening its balance sheet and there is a renewed focus on cash flow generation. Operating cash flow conversion will now be tied to management compensation in 2026.

Segment-level drivers, including Taste, Scent, and Health & Biosciences, are expected to benefit from new wins. Reinvestment in innovation should also support growth, however, modest foreign exchange tailwind is expected to further aid results.

The company's fiscal 2026 revenue is expected to be $10.5 billion to $10.8 billion, which is roughly in line with Street consensus of $10.63 billion. The brokerage raised its internal estimates for 2026 revenue and adjusted earnings per share to $10.64 billion and $4.49.

The investment firm said the combination of volume recovery, portfolio execution, segment-level growth, and improving sentiment in chemicals and consumer staples supports the firm's constructive outlook.

Oppenheimer upgraded the stock to outperform, with a $97 price target.

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