The Middleby (MIDD – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Timothy Thein from Citi remains neutral on the stock and has a $155.00 price target.
Timothy Thein has given his Buy rating for The Middleby’s stock (MIDD) due to a combination of factors. Thein notes that despite a more cautious market, The Middleby’s exposure to large chains is seen as advantageous, as this area remains strong. He also indicates that the channel inventory dynamic noted earlier this year seems to have faded, and recent comments on October orders are mildly encouraging. Furthermore, the stock’s significant year-to-date underperformance in comparison to Industrials suggests to him that the expectations for third quarter results are relatively low.
In the Commercial Foodservice segment, Thein expects total revenues of around $647 million in the third quarter, which would be effectively flat sequentially. Despite a sluggish general market and higher rates contributing to a pause in large institutional project activity, Thein anticipates a positive message regarding investment patterns from The Middleby’s large chain customers. For the Food Processing segment, he projects a downturn in revenue from the stronger-than-expected second quarter, but expects a normal seasonal improvement in the fourth quarter. Despite the uncertain outlook for Residential due to decelerating repair and remodeling activity, Thein still gives a Buy rating based on the factors mentioned above.
In another report released on October 25, KeyBanc also reiterated a Buy rating on the stock with a $160.00 price target.
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Based on the recent corporate insider activity of 32 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 MIDD in relation to earlier this year.
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The Middleby (MIDD) Company Description:
The Middleby Corp. engages in the design, manufacture, marketing, and distribution of foodservice equipment. It operates through the following segments: Commercial Foodservice Equipment Group, Food Processing Equipment Group, Residential Kitchen Equipment Group, and Corporate and Other. The Commercial Foodservice Equipment Group segment manufactures, sells, and distributes foodservice equipment for the restaurant and institutional kitchen industry. The Food Processing Equipment Group segment includes manufactures preparation, cooking, packaging food handling, and food safety equipment for the food processing industry. The Residential Kitchen Equipment Group segment manufactures, sells, and distributes kitchen equipment such as cookers, stoves, ovens, refrigerators, dishwashers, microwaves, cooktops, wine coolers, ice machines, ventilation, and outdoor equipment for the residential market. The Corporate and Other segment refers to the corporate and other general company assets and operations. The company was founded in 1888 and is headquartered in Elgin, IL.
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