Seaport Global Securities Starts Manitowoc Foodservice (MFS) at Buy

Seaport Global Securities initiates coverage on Manitowoc Foodservice (NYSE: MFS) with a Buy rating and a price target of $22.00.

Analyst Walt Liptak commented, "We are initiating coverage of Manitowoc Foodservice, Inc. (MFS) with a Buy rating and $22 price target. We believe MFS offers an attractive investment opportunity due to long-term sector growth and a newly energized management team that is executing on a turnaround strategy. We believe that the food equipment sector should grow 1%-3% CAGR over the next four years, which will give MFS a growing business environment to increase profits using the 80/20 optimization strategy. Our $22 price target equates to a 2018E EV/EBITDA multiple of 11.6x. Comparable companies with food equipment segments, including ITW, JBT, MIDD and SXI, are trading at a premium to MFS. We believe that there is potential upside to our 2017-2018 EPS estimates if we are too conservative regarding the food equipment industry growth rate or MFS's profit improvement from the 80/20 optimization."

For an analyst ratings summary and ratings history on Manitowoc Foodservice click here. For more ratings news on Manitowoc Foodservice click here.

Shares of Manitowoc Foodservice closed at $17.55 yesterday.

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