Analyst Brian McNamara from Canaccord Genuity maintained a Buy rating on The Middleby and keeping the price target at $162.00.
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Brian McNamara has given his Buy rating due to a combination of factors, including The Middleby’s strong focus on innovation and strategic positioning. The company is excited about its advancements in beverage and dispense technologies, particularly with Newton’s patented CFV technology, which enhances flow and pressure control across various applications. This innovation is seen as a significant growth driver, despite the current challenges in restaurant investments and cash flow constraints.
Furthermore, The Middleby management is optimistic about the recovery in their grill segment, anticipating growth as retailers manage inventories and tariffs become a net positive. The company believes its stock is undervalued and is poised for potential growth through mergers and acquisitions post the Food Processing segment spin-off. Additionally, the company’s strong domestic production base in North America positions it well to mitigate tariff impacts, with pricing strategies expected to offset costs in the coming quarters.
McNamara covers the Consumer Cyclical sector, focusing on stocks such as SharkNinja, Inc., Traeger, and Planet Fitness. According to TipRanks, McNamara has an average return of -2.7% and a 47.86% success rate on recommended stocks.
In another report released on August 7, Robert W. Baird also maintained a Buy rating on the stock with a $140.00 price target.