Canaccord Genuity has increased its price target for Middleby Corp to $187 from $175 while maintaining a Buy recommendation, citing the company's ongoing portfolio reshaping and capital allocation moves. The update comes as Middleby prepares to report fourth-quarter 2025 results, with the company scheduled to release the numbers before the market opens on Thursday, February 26.
At the time of Canaccord's update, Middleby shares were trading at $158.15, which sits below InvestingPro's Fair Value estimate of $163.30. That gap, Canaccord suggests, leaves room for investor upside should the company's turnaround thesis play out.
Analyst rationale
Canaccord's analysis incorporated recent company results, capital expenditure and new-unit guidance reported by Middleby's restaurant customers, and commentary from industry peers. The firm highlighted a conditional scenario: if the worst of restaurant-traffic declines is behind the industry, a sizable replacement cycle could develop. In that scenario, operators may accelerate purchases of Middleby's commercial foodservice equipment, which Canaccord says can deliver rapid paybacks to buyers through reductions in waste and labor costs.
Portfolio moves and cash returns
Middleby announced in December that it had entered into a definitive agreement to sell a 51% stake in its Residential Kitchen business to 26North, with that segment valued at $885 million in the transaction. The deal closed on February 2, and Middleby received cash proceeds of approximately $540 million while retaining a $135 million seller note provided to the joint venture.
The company also repurchased 1.5 million shares for $218 million during the fourth quarter of 2025 and bought additional stock valued at $152 million in January. InvestingPro Tips noted that management's aggressive repurchases have contributed to a high shareholder yield.
With the Residential Kitchen business now in a joint venture and a Food Processing spin expected in the second quarter, Canaccord said renewed managerial focus on the commercial foodservice segment should underpin a turnaround in that core business.
Estimates and valuation
Following the corporate moves, Canaccord modestly raised its 2026 estimates and increased its sum-of-the-parts-derived price target to $187 from $175. Wall Street analysts maintain a consensus Buy rating on Middleby, which has a market valuation of $7.97 billion. Consensus forecasts reflected in that analyst community project a return to profitability, with expected earnings of $9.30 per share for fiscal 2025.
Other recent corporate developments
Beyond the 51% sale of the Residential Kitchen unit and the associated proceeds, Middleby extended a cooperation agreement with Garden Investment Management. As part of that extension, the company will include a nomination of Ed Garden for election to the board of directors at Middleby's 2026 annual meeting. The company also added Christopher Hix to its board; Hix brings prior experience as Executive Vice President and Chief Financial Officer of Enovis Corporation.
Analyst activity
In the broader analyst community, Jefferies upgraded Middleby to a Buy rating and pointed to an expected recovery in Commercial Foodservice demand as a primary catalyst for the stock. Canaccord's actions included maintaining a Buy stance and raising its price target - initially to $175 and then, following further review and the sum-of-the-parts work, to $187.
What to watch next
- Middleby's fourth-quarter 2025 results, due before market open Thursday, February 26.
- Timing and execution details for the Food Processing spin expected in the second quarter.
- How the company deploys remaining proceeds and whether share repurchases continue to be a priority.
Canaccord's revised target and the company's balance-sheet actions leave Middleby positioned as a focused commercial foodservice equipment company in the view of these analysts, but upcoming earnings, the spin timetable, and end-market demand will be decisive in validating that view.