Middleby's Inventory Destocking Process To Mute Revenue Expectations Till Q4, Analyst Cautions
Portfolio Pulse from Nabaparna Bhattacharya
Benchmark analyst Todd M. Brooks reiterated a Buy rating on The Middleby Corporation (NASDAQ:MIDD), but lowered the price target from $180 to $170. The company's 2Q23 results showed in-line revenue performance, driven by the Food Processing segment. The inventory destocking process in both Residential Kitchen and Commercial Foodservice dealers will likely continue through 3Q23, muting revenue expectations before an anticipated normalization in 4Q23. The analyst lowered FY23 and FY24 revenue estimates.
August 07, 2023 | 6:54 pm
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The Middleby Corporation's price target has been lowered from $180 to $170 by Benchmark analyst Todd M. Brooks. The company's inventory destocking process is expected to mute revenue expectations until Q4 2023.
The news directly mentions Middleby Corporation and discusses the company's financial outlook. The analyst's decision to lower the price target could potentially impact investor sentiment, but the overall Buy rating suggests a positive long-term outlook. The inventory destocking process, which is expected to mute revenue expectations until Q4 2023, could lead to short-term uncertainty, hence the neutral score.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100