Citi starts off coverage on Darling Ingredients (NYSE:DAR) with a Buy rating.
The firm is positive on Darling with its view that growth will be strong as demand for low-carbon biofuels continues to accelerate.
"Projected global demand growth for low-carbon biofuels continues to accelerate, but so does intermediate-term oversupply risk, making for a high growth market in which value-oriented return metrics should increasingly matter," updates Citi on the industry setup
Shares of Darling Ingredients are up 3.02% in premarket trading to $76.00. Citi's price target of $110 implies a big run higher and is well ahead of the average Wall Street PT of $89.11.