McCormick & Company: Navigating Cost Pressures with Strategic Pricing and Long-term Growth Potential

TD Cowen analyst Robert Moskow maintained a Buy rating on McCormick & Company (MKC – Research Report) today and set a price target of $85.00.

Robert Moskow has given his Buy rating due to a combination of factors that reflect both current challenges and future potential for McCormick & Company. Despite lowering the FY25 organic growth forecast to 2% and adjusting the EPS estimate to $2.98, Moskow anticipates that the company will effectively manage cost pressures through productivity improvements and strategic pricing. The expectation is that McCormick will mitigate a significant portion of the increased costs from tariffs, impacting only the latter half of the fiscal year.
Looking ahead to FY26, Moskow maintains an unchanged EPS outlook, suggesting confidence in the company’s ability to fully pass through these costs to consumers. The projected price target of $85 per share, based on a 25.5x multiple of the 12-month forward EPS estimate, indicates a valuation slightly below the five-year average P/E ratio, yet still attractive. This reflects a belief in McCormick’s resilience and capacity to navigate the current economic landscape while maintaining long-term growth potential.