In a report released yesterday, Peter Galbo from Bank of America Securities reiterated a Buy rating on McCormick & Company (MKC – Research Report), with a price target of $96.00.
Peter Galbo has given his Buy rating due to a combination of factors influencing McCormick & Company’s future performance. Despite the company’s first-quarter earnings per share falling short of expectations, this was largely attributed to foreign exchange impacts and a shift in stock-based compensation timing, both of which are expected to stabilize as the year progresses. The company has maintained its full-year financial outlook and is projected to benefit from easing pricing headwinds and stable volumes as previous price investments begin to take effect.
Additionally, the company’s valuation remains attractive, with a price objective set at $96, reflecting a price-to-earnings ratio that aligns with its historical average. McCormick’s initiatives to boost consumer volumes in the Americas and an improved cost outlook further support the Buy rating. The anticipated moderation of foreign exchange headwinds and the strategic timing of stock-based compensation expenses are expected to contribute positively to the company’s financial performance throughout the year.
In another report released on March 14, TD Cowen also maintained a Buy rating on the stock with a $92.00 price target.
MKC’s price has also changed slightly for the past six months – from $83.380 to $80.230, which is a -3.78% drop .