Analyst Robert Moskow from TD Cowen maintained a Hold rating on MGP Ingredients and decreased the price target to $27.00 from $30.00.
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Robert Moskow has given his Hold rating due to a combination of factors influencing MGP Ingredients’ current market position. The company’s third-quarter results exceeded expectations, and management has increased its guidance for 2025. However, the outlook for the Branded Spirits segment remains uncertain, as sales have declined due to weaknesses in mid and value brands, despite a slight increase in premium sales. This segment’s recovery is crucial for closing the valuation gap with branded peers.
Furthermore, the new CEO, Julie Francis, is conducting a strategic review to enhance the Branded Spirits portfolio by focusing on high-potential brands and reducing underperformers. This approach aims to achieve a more balanced portfolio with better growth and margins. Additionally, the appointment of Matias Bentel as Chief Marketing Officer is expected to drive marketing initiatives and brand strategy. Despite these positive steps, the overall uncertainty in the Branded Spirits segment and the need for a successful turnaround contribute to the Hold rating.
Moskow covers the Consumer Defensive sector, focusing on stocks such as Kraft Heinz, Clorox, and McCormick & Company. According to TipRanks, Moskow has an average return of 3.2% and a 46.44% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $24.00 price target.