In a report released today, Robert Moskow from TD Cowen maintained a Hold rating on MGP Ingredients (MGPI – Research Report), with a price target of $35.00.
Robert Moskow has given his Hold rating due to a combination of factors impacting MGP Ingredients’ outlook. The company’s fourth-quarter results were in line with management’s expectations, but the forecast for 2025 was notably below consensus estimates. This was largely due to a more pronounced imbalance in the supply and demand of Brown Goods, which is expected to continue affecting the company’s performance into 2026. Additionally, the anticipated growth in branded spirits is no longer expected to materialize in 2025, with sales now projected to remain flat.
The outlook for MGP’s Distilling Solutions segment has also worsened, with management revising sales and gross profit expectations downward significantly. This revision comes as the company proactively adjusts volume forecasts and pricing in response to reduced demand and excess inventory. Furthermore, the premium segment of branded spirits, which was a key part of the company’s transformation strategy, is now expected to see limited growth. As a result, MGP plans to scale back its advertising and promotional spending in 2025, focusing more on premium brands while reducing support for underperforming ones. These strategic adjustments reflect a cautious approach amid ongoing market challenges.
According to TipRanks, Moskow is a 3-star analyst with an average return of 2.6% and a 47.21% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as The Hershey Company, JM Smucker, and Vital Farms.
In another report released on February 25, Lake Street also maintained a Hold rating on the stock with a $55.00 price target.