MGP Ingredients bear case offers little compelling evidence, says Craig-Hallum
Commenting on some recent bearish sentiment that has been circulating around MGP Ingredients, Craig-Hallum analyst Alex Fuhrman says bear case offers "little substantive or compelling evidence," and challenges assumption that aged whiskey can sell for three times what new distillate currently sells for with "scant evidence." Nonetheless, the analyst notes that bears correctly point out that new capacity is coming online, but believes concerns are overblown. While acknowledging that some are critical of the company's move into branded alcohol, Fuhrman believes the company's brands will do well as it has a "strong background" in producing quality products. He reiterates a Buy rating and $50 price target on the shares.