Analyst Brian McNamara from Canaccord Genuity maintained a Buy rating on The Middleby and increased the price target to $175.00 from $171.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Brian McNamara has given his Buy rating due to a combination of factors surrounding The Middleby’s strategic moves. The company recently announced a significant transaction involving the sale of a majority stake in its Residential Kitchen business, which is valued at $885 million. This move is seen as a pivotal step in transforming The Middleby into a pure-play Commercial Foodservice (CFS) equipment company, aligning with its strategic focus.
Moreover, the transaction is expected to provide The Middleby with substantial cash inflow and a seller note, which enhances its financial position. Despite some reservations about the timing of the sale, given the current market conditions, the deal’s valuation exceeded expectations and is considered a positive surprise. This strategic shift, coupled with the anticipated spin-off of the Food Processing business, is expected to benefit the core CFS business, prompting McNamara to reiterate his Buy rating and slightly increase the price target.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $175.00 price target.