Barrington analyst Gary Prestopino has maintained their neutral stance on MEI stock, giving a Hold rating on August 23.
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Gary Prestopino’s rating is based on a combination of factors that reflect both the current performance and future expectations for Methode Electronics. The company is set to report its Q1/26 financial results, with sales estimates slightly below consensus expectations, indicating potential challenges in meeting market forecasts. Despite this, the company’s guidance for FY/26 suggests a positive outlook with expected net sales between $900 million and $1.0 billion and an adjusted EBITDA range of $70 million to $80 million, with a stronger performance anticipated in the second half of the fiscal year.
Furthermore, Methode Electronics experienced significant non-operational and non-recurring charges in FY/25, totaling $51 million, which are not expected to recur in FY/26, potentially easing year-over-year comparisons. The company aims to double its adjusted EBITDA in FY/26, driven by operational improvements, even as it faces a projected $100 million decline in sales due to reduced EV demand, particularly with Stellantis. Given these mixed signals, Prestopino has opted for a Hold rating, reflecting a cautious but optimistic stance on the company’s ability to navigate these challenges.
In another report released on August 23, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.50 price target.