Middleby (MIDD), which is set to spin off its Midera Food Processing business on July 6, represents an "interesting investment opportunity," Oppenheimer said in a note Wednesday.

The spin off is the last step in Middleby's transformation into a "pure play" commercial foodservice company after it sold 51% of its Residential Kitchen unit to 26North Partners for $565 million in February, the note said.

The remaining company will likely be a "dominant player in the commercial foodservice space" with high cash flow, as well as "industry-leading margins, above-industry growth" and a "wide brand moat," Oppenheimer said.

Meanwhile, Midera is the "faster growing, less mature, acquisitive business, with margin expansion and favorable tailwinds in food processing," the investment firm said.

Oppenheimer initiated coverage of Middleby with an outperform rating and $205 price target.

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