William Blair analyst Ross Sparenblek has maintained their neutral stance on JBTM stock, giving a Hold rating on May 9.
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Ross Sparenblek has given his Hold rating due to a combination of factors that present both opportunities and challenges for JBT Marel. The company is experiencing a positive trend in protein demand, particularly in pork and poultry, which has shown signs of recovery and momentum. However, the integration of Marel presents complexities, especially in the face of ongoing tariff uncertainties that could significantly impact operational strategies.
Despite the potential for cost synergies, estimated at $150 million, the looming EU tariffs, which could rise to 50%, add a layer of complexity to the integration process. This uncertainty necessitates a cautious approach, as it could disrupt the company’s synergy roadmap and affect supply chain and SG&A savings. Consequently, Sparenblek’s Hold rating reflects a balanced view, acknowledging the positive demand trends while remaining cautious about the external challenges that could hinder JBT Marel’s growth prospects.
Sparenblek covers the Industrials sector, focusing on stocks such as MSA Safety, SPX, and Mayville Engineering Company. According to TipRanks, Sparenblek has an average return of 10.3% and an 81.82% success rate on recommended stocks.
In another report released on May 9, Jefferies also maintained a Hold rating on the stock with a $120.00 price target.