Truist Securities Reiterates Buy Rating on MGP Ingredients (MGPI) as CEO Resigns

Truist Securities analyst Bill Chappell reiterated a Buy rating and $75.00 price target on MGP Ingredients (NASDAQ: MGPI).

The analyst said: "This morning, MGP Ingredients, Inc. announced the departure of CEO David Bratcher. Current CFO Brandon Gall will serve as Interim CEO and President, effective Jan 1. Additionally, Donn Lux will be succeeding Karen Seaberg as Chairman of the Board and will lead the Board search for a new CEO. The company reaffirmed its FY24 top and bottom line guidance, but now expects $72M in Capex vs. $78M prior.

Our Take: January was, admittedly, unfortunate timing for CEO Bratcher to take the reigns. The spirits category slowed and the market for aged whiskey disintegrated. He came from the Luxco branded side of the business to accelerate MGPI's transformation into a primarily branded business. We believe that goal is unchanged despite his departure. Overall, we don't view today's news as a positive or negative for the troubled story, but continue to believe the company can return to profitable growth as the industry normalizes; likely in late 2025. Maintain Buy."

For an analyst ratings summary and ratings history on MGP Ingredients click here. For more ratings news on MGP Ingredients click here.

Shares of MGP Ingredients closed at $40.00 yesterday.

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