TD Cowen Maintains a Hold Rating on MGP Ingredients (MGPI) With a $30 PT

MGP Ingredients, Inc. (NASDAQ:MGPI) is one of the best undervalued defensive stocks to buy according to analysts. Analyst Robert Moskow from TD Cowen maintained a Hold rating on MGP Ingredients, Inc. (NASDAQ:MGPI) on August 1, keeping the price target at $30.00.

Is MGP Ingredients, Inc. (MGPI) the Underperforming Stock Targeted By Short Sellers?

A close-up of an iconic bottle of branded spirit produced by the distillery.

The analyst told investors in a research note that MGP Ingredients, Inc. (NASDAQ:MGPI) exhibited strong Q2 results that surpassed consensus but aligned with internal expectations.

Management reaffirmed its 2025 guidance, but the forecast still expects a considerable decline in gross profit despite proactive contract negotiations offering better visibility with Brown Goods customers.

Moskow added that Branded Spirits sales have exhibited weakness, especially with the mid and value segments experiencing a considerable decline. He expects this trend to continue, with sales estimated to decline further by 2025.

MGP Ingredients, Inc. (NASDAQ:MGPI) manufactures and trades food, beverages, starch food ingredients, and specialty wheat protein. The company’s operations are divided into the following segments: Distilling Solutions, Branded Spirits, and Ingredient Solutions.

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Disclosure: None. This article is originally published at Insider Monkey.