JPMorgan upgrades Middleby stock rating to Neutral from Underweight

Investing.com - JPMorgan has upgraded Middleby Corp (NASDAQ:MIDD) from Underweight to Neutral while simultaneously lowering its price target to $125.00 from $140.00. The stock currently trades at $120.06, near its 52-week low of $114.57, according to InvestingPro data, which suggests the company may be undervalued relative to its fundamentals.

The price target adjustment represents a recalibration based on approximately 9x FY1 EV/EBITDA, according to the investment bank’s analysis released Friday.

JPMorgan noted that while its updated EBITDA estimates remain approximately 7% below consensus for both fiscal years 2026 and 2027, the current valuation reflects a balanced risk-reward profile against muted market expectations.

The target valuation multiple aligns with Middleby’s recent trading history and sits approximately 3x below the company’s long-term average multiple.

JPMorgan justified this valuation approach by citing Middleby’s relatively high leverage ratio as a factor that warrants the current multiple rather than a return to historical averages.

In other recent news, Middleby Corp reported its third-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $2.37, exceeding the forecasted $2.11. This represents a 12.32% surprise for investors. Additionally, Middleby Corp’s revenue reached $982 million, outperforming the anticipated $961.14 million. These results have generated a positive response from the market. Analyst firms have taken note of these developments, with some considering adjustments to their ratings. Middleby’s earnings and revenue performance are crucial indicators for investors. These recent developments highlight the company’s current financial health.

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