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Investing.com - Canaccord Genuity raised its price target on Middleby Corp (NASDAQ:MIDD) to $175.00 from $162.00 on Tuesday, while maintaining a Buy rating on the commercial foodservice equipment manufacturer. Currently trading at $136.85, InvestingPro analysis suggests the stock is trading below its Fair Value, with a "GOOD" overall financial health score.
The price target increase follows Canaccord’s survey of 32 industry dealers and distributors, which yielded better-than-expected results despite Middleby’s Commercial Foodservice segment posting its seventh consecutive quarter of organic sales declines. The company maintains strong fundamentals with a healthy current ratio of 2.57 and management has been actively buying back shares, according to InvestingPro data.
The research firm noted that increasing restaurant equipment prices and challenging macroeconomic conditions will continue to pressure Middleby’s customers and equipment demand, though the survey indicated meaningful improvement in distribution channels.
Canaccord highlighted that Middleby’s domestically manufactured brands, particularly Taylor, may outperform competitors due to limited exposure to tariffs.
The firm raised its Commercial Foodservice estimates and profitability projections to the high end of Middleby’s guided ranges, citing that management’s quantifiable Q3 and FY2025 guidance should result in improved expectations management going forward.
In other recent news, The Middleby Corporation reported mixed results for its Q2 2025 earnings. The company achieved an adjusted earnings per share (EPS) of $2.35, slightly surpassing the anticipated $2.29. However, revenue fell short, coming in at $977 million compared to the forecasted $980.67 million. Additionally, Middleby has extended the maturity date of its existing credit agreement to April 28, 2028, as part of a third amendment to its Eighth Amended and Restated Credit Agreement. This agreement involves Middleby Marshall Inc. and other subsidiaries, with Bank of America, N.A. acting as the administrative agent. In a strategic move to enhance its food processing equipment portfolio, Middleby acquired the German company Oka-Spezialmaschinenfabrik GmbH & Co. KG, which generates annual revenues of $12 million. Furthermore, Canaccord Genuity lowered its price target for Middleby to $162 from $186, maintaining a Buy rating, citing the impact of tariffs and mixed segment performance. The Food Processing segment outperformed expectations, while the Commercial Foodservice and Residential Kitchen segments were slightly below consensus.
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