MGP Ingredients (MGPI – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Ben Klieve from Lake Street upgraded the rating on the stock to a Buy and gave it a $45.00 price target.
Ben Klieve has given his Buy rating due to a combination of factors that suggest potential upside for MGP Ingredients despite recent challenges. The company has shown resilience with a slight beat in its Q4 2024 results, indicating a potential turnaround. Although the spirits industry faces headwinds, MGP’s strategic renegotiation of Brown Goods contracts is expected to stabilize future performance and strengthen customer relationships.
Furthermore, the Ingredient Solutions segment is poised for recovery following a challenging year marked by a facility retrofit and international sales difficulties. The anticipated rebound in 2025, supported by new domestic customer acquisitions, positions the company for growth. Additionally, the current valuation of MGP shares presents an attractive opportunity for value investors, as the stock is trading near its earnings and valuation troughs, suggesting room for appreciation as the business stabilizes.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $50.00 price target.