MEI - Methode Electronics: Hold Until It Is Clear

2024-06-10 07:25:46 ET

Summary

• Despite attractive multiples and high dividend yield, the company's performance raises concerns about its future operations.
• There is a risk of further deterioration of the shareholder's value.
• The alternative valuation technique suggests price appreciation, but it is based on old guidance and the real picture might be even more gloomy.

Continuing to check out producers for the OEMs, Methode Electronics, Inc. ( MEI ) grabbed my mind. With the price tumbling nearly 76% for the past year, I found that the latest SA contributors' analysis were voicing positive, proposing to Buy ; this stays in contrast to Quant and Wall Street suggestions, making bold statements. I would like to analyze the company and either support my fellow analysts or come to my own conclusions. Despite both multiples and alternative valuation techniques indicating price appreciation, I will provide and support my concerns about the company's future operations and explain why it's better to Hold until the coming results clear some picture....

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