McCormick: Buy Rating Reiterated on Strategic Upside From Potential Reverse Morris Trust With Unilever’s Foods Unit

Analyst Peter Galbo from Bank of America Securities maintained a Buy rating on McCormick & Company and keeping the price target at $80.00.

Peter Galbo has given his Buy rating due to a combination of factors tied to McCormick’s strategic opportunity and valuation. He sees a potential Reverse Morris Trust transaction with Unilever’s Foods unit as industrially compelling, adding major brands like Hellmann’s and Knorr that expand McCormick’s footprint into attractive condiment and seasoning categories and new geographies, with substantial revenue and cost synergies.

He also views the prospective all-stock structure as financially favorable, noting that the deal could be completed at a reasonable EBITDA multiple and would likely be accretive to McCormick’s EPS given its equity valuation and funding costs. Combined with McCormick’s established track record of integrating large flavor and condiment acquisitions and the upside versus his $80 price objective, these dynamics support his reiterated Buy recommendation on the shares.

According to TipRanks, Galbo is an analyst with an average return of -0.3% and a 46.06% success rate. Galbo covers the Consumer Defensive sector, focusing on stocks such as Coca-Cola, McCormick & Company, and General Mills.

In another report released today, TipRanks – DeepSeek also upgraded the stock to a Buy with a $59.00 price target.