Middleby falls after J.P.Morgan downgrades to 'underweight'
22/05/2024 15:23
** Shares of cooking equipment manufacturer Middleby
MIDD.O fall 2.5% to $129.66 in early trading
** J.P.Morgan downgrades MIDD to "underweight" from
"neutral", citing pricing and promotional pressures in the food
equipment market and slowing demand
** Brokerage sets Dec. 2024 price target at $118, which
represents an 11.3% downside over MIDD's last close
** Brokerage believes FY23 sales, which rose marginally
compared to FY22, were supported by a backlog burn, which is now
"behind for the most part"
** Our Underweight rating is predicated on our expectation
that MIDD’s consensus numbers are unachievable as we are
modeling FY24 and FY25 EBITDA 5% and 12% below consensus,
respectively - J.P.Morgan
** Brokerage also expects margin deleverage going ahead due
to rising price/cost pressures amid weak demand
** Six of 8 brokerages rate the stock "buy" or higher, 1
"hold" and 1 "sell"; their median PT is $168.50 - LSEG
** As of last close, MIDD has lost ~10% YTD
(Reporting by Pritam Biswas in Bengaluru)
((Pritam.Biswas@thomsonreuters.com))