On Thursday, Jefferies initiated coverage on John Bean Technologies (NYSE:JBT), a company specializing in food processing equipment, with a Hold rating and set a price target of $130.00.
The firm highlighted that John Bean Technologies is currently undergoing a significant change with the acquisition of Marel, which is expected to approximately double the company's size.
The analyst noted the stability of the food processing market, which is anticipated to benefit in the long term from global population growth and the expansion of the middle class.
Additionally, the company's ability to generate about 50% of its revenue from recurring sources due to its large global installed base contributes to a more stable demand base.
However, despite these positive long-term growth drivers, the initiation of coverage with a Hold rating is attributed to potential near-term risks associated with growth expectations for Marel.
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