Barrington analyst Gary Prestopino has maintained their neutral stance on MEI stock, giving a Hold rating on March 7.
Gary Prestopino has given his Hold rating due to a combination of factors affecting Methode Electronics. The company’s recent financial performance showed a decline in sales and adjusted EBITDA that fell short of expectations, largely due to challenges in the Automotive segment. This segment experienced a significant drop in net sales, which was not fully offset by new program launches and increased sales in the Industrial segment.
Despite these setbacks, there were positive developments such as improved operational efficiency, a return to positive free cash flow, and a notable increase in gross margin. Additionally, the company is poised for future growth with multiple new vehicle program launches planned. However, the softer-than-expected EV program launches and headwinds in key automotive markets, particularly in North America and Europe, contribute to the cautious outlook, justifying the Hold rating.
Prestopino covers the Consumer Cyclical sector, focusing on stocks such as Liquidity Services, LKQ, and Cars. According to TipRanks, Prestopino has an average return of 16.7% and a 57.00% success rate on recommended stocks.
In another report released on March 7, Robert W. Baird also maintained a Hold rating on the stock with a $9.00 price target.
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