Sensient Technologies is likely to get a big boost from food producer and grocers shifting away from artificial dyes to natural alternatives in the U.S., according to UBS. The bank initiated coverage with a buy rating. It also put a $115 price target on shares, implying 33% upside from Tuesday’s close. “We believe that US grocers and food producers are on the verge of a large shift from synthetic food dyes to natural color ingredients,” analyst Joshua Spector said in a note to clients. “Natural color adoption will increase in [the second half of 2026] to meet customer conversion targets at the start of 2027, and this will be a positive catalyst for [Sensient] stock.” Sensient is the largest producer of natural colors in the world, with roughly 60% sales exposure to North America, according to UBS. Growing adoption of natural food colorings in that market could drive a more than 200% increase in Sensient’s color group sales by 2030, according to the bank’s recent note. “We don’t see this growth priced into the stock, trading at only a slight premium to [average] despite our outlook for > 2x historical growth,” Spector wrote. UBS’ call falls in line with consensus on Wall Street. Of the three analysts covering Sensient, two have a strong buy or buy on the stock. One shop on the street has a hold on shares. Shares have fallen nearly 3% in the year to date, outperforming the overall market. However, its shares have shed roughly 10% over the past month.