TD Cowen Remains a Hold on MGP Ingredients (MGPI)

MGP Ingredients, Inc. (NASDAQ:MGPI) is one of the best consumer defensive stocks with more than 50% upside. MGP Ingredients, Inc. (NASDAQ:MGPI) received a rating update from TD Cowen analyst Robert Moskow, who reiterated a Hold rating on the stock while lowering the price target to $27 from $30.

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

The analyst based the downward revision on the company’s current market position. He stated that while MGP Ingredients, Inc.’s (NASDAQ:MGPI) Q3 results surpassed expectations and management raised its 2025 guidance, the outlook for the Branded Spirits segment is continually painting an uncertain picture. According to him, recovery in the segment is critical to bridge the valuation gap with branded peers, as sales in the segment have dropped because of weaknesses in mid and value brands, despite a slight growth in premium sales.

Moskow cited some positive aspects for MGP Ingredients, Inc. (NASDAQ:MGPI), including the appointment of Matias Bentel as Chief Marketing Officer and the strategic reviews being conducted by the new CEO, Julie Francis, to boost the Branded Spirits portfolio. However, he added that despite these steps, the overall uncertainty in the segment calls for a Hold rating.

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.