Benchmark starts MGP Ingredients at Buy as company responds to challenges

As previously reported, Benchmark initiated coverage of MGP Ingredients (MGPI) with a Buy rating and $35 price target MGP has seen earnings erosion over the past 18 months amid “a punishing time for the spirits sector and a reorientation of its legacy Ingredients business,” the analyst tells investors. However, the firm believes the company has taken a thoughtful approach to managing macro challenges and it expects the strength of its Branded Spirits portfolio and improvement in its Ingredient business can offset some of the Distilling segment headwinds in 2026 and lead to a possible return of revenue growth in 2027.