On Nov 29, we reiterated our Outperform recommendation on
The Middleby Corporation
), based on the company's track record of successful
acquisitions, which is expected to boost revenues in the long
Why the Reiteration?
Middleby has been experiencing a rise in revenues on the back
of successful acquisitions. The company has acquired
industry-leading brands and technologies to position itself as a
top player in the foodservice equipment and food processing
equipment industries. Middleby generated roughly $71.8 million in
acquisition revenues that accounted for 27.9% of the total
revenue growth in the third quarter of 2013. The company aims for
further inorganic growth in the coming quarters.
Additionally, Middleby is gaining market share via its organic
growth. As restaurant chains upgrade their equipment, revenues
for the Commercial Foodservice Equipment Group are expected to
rise. Moreover, the company expects the Food Processing Equipment
Group to generate higher revenues in subsequent quarters due to
ongoing production operations update by customers as well as new
international operation launches.
Furthermore, with the advent of latest technologies, the
company expects market share gain in the near future. Middleby is
well positioned to leverage its goodwill in the market. The
company offers a wide range of products to its target markets and
is constantly innovating.
In the last 30 days, the Zacks Consensus Estimate for Middleby
has risen 1.9% to $8.02 for 2013 and climbed 3.8% to $9.60 for
Other Stocks to Consider
Middleby currently carries a Zacks Rank #2 (Buy). Some other
stocks worth considering in the machinery sector include
DXP Enterprises, Inc.
). While Xylem carries a Zacks Rank #1 (Strong Buy), DXP
Enterprises and Graham Corp. hold a Zacks Rank #2.
DXP ENTERPRISES (DXPE): Free Stock Analysis
GRAHAM CORP (GHM): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
XYLEM INC (XYL): Free Stock Analysis Report
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