Analyst Robert Moskow from TD Cowen maintained a Hold rating on MGP Ingredients (MGPI – Research Report) and decreased the price target to $30.00 from $35.00.
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Robert Moskow’s rating is based on a combination of factors that reflect both challenges and opportunities for MGP Ingredients. The company reported better-than-expected first-quarter results and maintained its 2025 guidance, which provides some reassurance about its future performance. However, the ongoing supply glut in the distilling solutions sector is expected to continue into 2026, creating a challenging environment for growth.
Despite strong performance in Premium+ brands, the overall branded spirits sales declined, and there is no clear indication of a turnaround in this segment, which is crucial for investment. The management plans to invest in pricing strategies to stabilize mid and value brand volumes, particularly in tequila, where cost deflation may help offset margin pressures. While the company is taking steps to strengthen customer relationships and align market-based pricing, the persistent supply-demand imbalance and the unchanged weak outlook for distilling solutions contribute to the Hold rating.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MGPI in relation to earlier this year.