As previously reported, Lake Street downgraded MGP Ingredients (MGPI) to Hold from Buy with a price target of $75, down from $135, after MGP reported across-the-board top line weakness and continued pressure at least through Q4 in what the firm describes as “a breathtaking preliminary earnings release.” Shares were “deservedly getting smoked” in aftermarket trading, says the firm, which cites “the breadth of the weakness” for its downgrade and “belated move to the sidelines.” The firm anticipates the market will not give MGP the benefit of the doubt, positioning it firmly as a “show-me” stock, the analyst added.
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