Sensient Technologies is likely to get a big boost as food producers and grocers shift from artificial dyes to natural alternatives in the U.S., UBS said. The bank initiated coverage with a buy rating. It also has a $115 price target on the stock, suggesting an upside of 33% from Tuesday’s closing price. “We believe U.S. grocers and food producers are on the brink of a major transition from synthetic food colors to natural colorants,” analyst Joshua Spector said in a note to clients. “We expect increased adoption of natural colors (in the second half of 2026) to be a positive catalyst for (Sensient) stock as we aim to meet our customer conversion target of early 2027.” According to UBS, Sensient is the world’s largest natural color maker, with approximately 60% of its sales coming from North America. According to a recent report from the bank, sales of Sensient’s colorants group could increase by more than 200% by 2030 as the market expands the adoption of natural food colors. “Despite our forecast of more than doubling historic growth rates, we do not believe this growth is priced into the stock price, and we have placed only a small premium over the (average),” Spector said. UBS’s call is in line with Wall Street consensus. Of the three analysts covering Sensient, two have a strong buy or buy stance on the stock. A store down the street owns the stock. The stock has fallen nearly 3% since the beginning of the year, outperforming the broader market. However, the company’s stock price has fallen about 10% over the past month.
