MGP Ingredients slumps after cutting annual forecasts on weaker demand

MGP Ingredients

18/10/2024 18:22

** Shares of El Mayor tequila maker MGP Ingredients  MGPI.O 
drop as much as 27% at $59.46, set for worst day since Jan 2020
    ** MGPI lowered annual sales and profit forecasts after
market close on Thursday and warned it would miss Q3 results on
weak demand for spirits and elevated industry-wide whiskey
inventories 
    ** Brokerage TD Cowen slashes PT to $66 from $105, cites
"worse than expected" Q3 results and expects a much weaker 2025
    ** Says current slowdown in U.S. spirits has an acute impact
on craft brands, owing to limited advertising and promotion
resources 
    ** Also says premium brands like MGPI are among the first
targets of inventory cutbacks by distributors and retailers
    ** Company is set to report Q3 earnings on Oct 31 
    ** Six analysts recommend "hold", with a median PT of $102.5
    ** Including session's moves, stock has fallen ~39% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com))