Wedbush starts coverage on MGP Ingredients with 'outperform'

MGP Ingredients

11/10/2022 18:08

** Wedbush initiates coverage of distiller MGP Ingredients
Inc  MGPI.O , known mainly for its bourbon offerings, with
'outperform' rating; sets PT at $125, implying ~19% upside to
last close  
    ** Brokerage says MGPI is well-positioned to benefit from
positive industry trends including market share gains in
distilled spirits segment and "relative outperformance" of
bourbon within the sector
    ** Wedbush sees co's Luxco acquisition as an entry into the
finished goods segment that will offer the opportunity to shift
towards higher-end, faster growth products
    ** Expects MGPI to build out its portfolio gaps with M&A
helped by its strong balance sheet 
    ** "MGPI's top-priced segments have been outperforming, and
going forward, we believe ample opportunity exists for the
company to increase its positive mix through investment behind
premium, faster growth legacy brands" - Wedbush 
    ** Sees co's valuation as attractive for investors looking
for a distilled spirits play with shares having done well this
year   
    ** All 7 brokerages covering the stock rate it 'buy' or
higher; median PT is $125 - Refinitiv IBES 
    ** Including session's move, stock has gained 20.67% YTD 
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))