MGP Ingredients added to ‘Best Ideas List’ at Wedbush

Wedbush analyst Gerald Pascarelli added MGP Ingredients to the firm’s “Best Ideas List” while keeping an Outperform rating on the name with a $135 price target. The addition is largely valuation-driven as there is a “clear disconnect with the shares,” which are down 30% since the company reported Q2 earnings in August, the analyst tells investors in a research note. Over that time there have been no negative earnings revisions, nor any indication from management that there is a fundamental slowdown in the business, the analyst tells investors in a research note. Looking out to 2024, the firm expects the closure of the Atchison, KS distillery to result in a meaningful margin inflection, which should drive growth and put MGP “in a position to deliver another year of beat and raises.”