Darling International falls as Avondale downgrades

Darling shares lost 98 cents, or 6.1 percent, to $15.20.

In a note to investors, Daniel Mannes downgraded Darling to "Market Perform" from "Market Outperform." Mannes said the company continues to benefit from global food and feed demand, as well as higher demand for biodiesel, which can be produced from animal byproducts.

"We continue to see biofuels as a profitable venture for Darling that would add upside to our model," he said.

However, he said valuation is "stretched" as the company holds off making firm decisions regarding its biodiesel segment as it awaits an extension on biodiesel tax credits. He maintained his $15.50 price target.

But Stephens analyst Farha Aslam raised Darling's price target to $19 from $17, citing the company's stronger-than-expected earnings in the first quarter.

On Thursday, the Irving, Tex., company said its first-quarter income rose to $21.5 million, or 26 cents per share, from $9.6 million, or 12 cents per share, in the year-ago quarter. Revenue grew to $202 million from $138.6 million.

Analysts expected the company to earn 21 cents per share.