Weakening FoodTech Demand Causes Us to Revise Our Valuation Modestly to the Downside

Following narrow-moat rated John Bean Technologies’ second quarter results, we modestly reduce our fair value to $121 from $123 previously. It’s our continued opinion that FactSet consensus still rates JBT’s stock at a premium to its intrinsic value, and we remain locked somewhere between the bull and bear cases on the stock. The primary driver of our revised downward forecast includes lowered guidance, primarily due to JBT's FoodTech segment, and as we fully incorporate the Bevcorp acquisition in our model. Of course, we expect to continue making incremental changes on the acquisition's impact as we received additional information.