Why Middleby Shares Jumped 10% Today

Shares of restaurant equipment maker Middleby (NASDAQ: MIDD) rose almost 10% on Monday thanks to a bullish analyst report.

KeyBanc Capital Markets analyst Jeffrey Hammond upgraded Middleby to overweight early Monday morning. The firm placed a $90 price target on the stock, 23% above Friday's closing price. Hammond cited "mounting evidence" that the market for restaurant equipment bottomed out in early April, setting the company up for a solid recovery from that point. Under these circumstances, Middleby looks undervalued at 14 times forward earnings and 11 times free cash flows.

Image source: Getty Images.

Continue reading

Source Fool.com