Analyst Robert Moskow from TD Cowen maintained a Hold rating on MGP Ingredients and keeping the price target at $30.00.
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Robert Moskow has given his Hold rating due to a combination of factors impacting MGP Ingredients. The company’s second-quarter performance exceeded consensus but aligned with internal expectations, as management reaffirmed its guidance for 2025. Despite proactive contract negotiations providing better visibility with Brown Goods customers, the forecast still anticipates a significant decline in gross profit.
Branded Spirits sales have shown weakness, particularly in the mid and value segments, which experienced a notable decline. This trend is expected to continue, with sales projected to decrease further by 2025. Although premium brands have demonstrated resilience, the overall outlook for Distilling Solutions remains weak, with significant declines in sales and volume. Management’s efforts to reset the segment and address pricing issues are acknowledged, but the supply and demand imbalance is expected to persist into 2026, contributing to the Hold rating.
In another report released on July 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $33.00 price target.