Middleby (MIDD) – RSI Divergence Meets Spin-Off Catalyst🚀 Middleby (MIDD) – RSI Divergence Meets Spin-Off Catalyst
Technical View:
Price sitting at strong support ($124–130) with clear RSI-price divergence signaling potential bottoming.
Volume expansion = increasing participation → accumulation phase in progress.
Resistance map:
⚡ $143–150 = equilibrium zone
🎯 $170–180 = premium target
❌ "X Marks the Spot" ~ $182+ → breakout confirmation
Fundamental Catalysts:
📌 Spinoff 2026: Food Processing division ($800M rev / ~30% EBITDA) separation → unlocks shareholder value.
🏭 Recent acquisition of Oka GmbH boosts bakery automation ahead of spin.
📊 EPS beat last quarter but cautious guidance (tariffs = ~$150M/yr hit). Market overreacted, fueling divergence setup.
🏆 New automation products (FryBot, PizzaBot, IoT) winning industry awards → tech edge vs competitors.
Macro Alignment:
Tariff headwinds + sector slowdown created artificial compression.
Industrial cycle bottoming could drive capital rotation back into equipment suppliers.
Analyst consensus: $159–172 PT → ~15–30% upside from here.
Trading Thesis:
Enter near support zone ($124–130) on divergence confirmation.
First target: $159–170
Breakout target: $182+ ("X Marks the Spot")
Stop: Below $120 weak low.
