Barrington analyst Gary Prestopino has maintained their neutral stance on MEI stock, giving a Hold rating today.
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Gary Prestopino’s rating is based on a combination of factors that reflect both positive developments and ongoing challenges for Methode Electronics. The company reported better-than-expected financial results for Q1/26, with sales and adjusted EBITDA surpassing both internal and consensus estimates. This improvement was driven by growth in the Industrial segment, particularly in power solutions for electric vehicles and data centers, which offset declines in the Automotive segment.
Despite these positive results, the Automotive segment experienced a significant decline in sales, primarily due to weaker activity in North America. Additionally, while the company has shown strong free cash flow generation and a reduction in net debt, the overall sales decline and ongoing challenges in the Automotive sector contribute to a cautious outlook. As a result, Prestopino maintains a Hold rating, reflecting a balanced view of the company’s current performance and future prospects.
Prestopino covers the Consumer Cyclical sector, focusing on stocks such as Dorman Products, OPENLANE, and Stoneridge. According to TipRanks, Prestopino has an average return of 11.1% and a 54.58% success rate on recommended stocks.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.50 price target.