Ingredion (INGR) is trading 8% lower today after reporting second-quarter earnings per share (EPS) of $1.12 vs. $1.65 in the prior year, which was $0.23 below expectations.

The primary reason behind the shortfall was weakness in sales to the food service market, as restaurants were adversely impacted by the COVID-19 crisis. In addition, there was weakness in the Mexican brewing market due to COVID-19. Revenues of $1.35 billion versus $1.55 billion were nearly 10% short of the expected $1.47 billion.

On the conference call, management indicated that sales have improved in recent months, but it may be a while before they return to pre-COVID-19 levels. Therefore, no guidance was given for the remainder of 2020, due to the continued uncertainty. However, I look for gradual stabilization, and I believe that the company can earn $5.80 a share this year and $6.50 a share in 2021.

Given the presence of very low interest rates and the stock’s overall market valuation, I still view INGR as inexpensive and a solid choice. My new buy under price is $82. My target is now $95.