TD Cowen analyst Robert Moskow has maintained their bullish stance on MKC stock, giving a Buy rating on March 11.
Robert Moskow has given his Buy rating due to a combination of factors that highlight McCormick & Company’s strategic positioning and growth potential. The company is well-situated to benefit from the increasing consumer preference for fresh and bold flavors, which aligns with the trend of people cooking more at home. This shift is expected to drive demand for McCormick’s products, as they are often used alongside fresh ingredients. Additionally, McCormick stands to gain from food and beverage companies reformulating their products to enhance health credentials, such as reducing sodium content and adding more heat.
Furthermore, Moskow forecasts a positive trajectory in McCormick’s sales growth, with organic growth expected to rise from 0.8% in FY24 to 3.5% in FY26. The company’s earnings per share (EPS) are also projected to increase, reflecting a return to its long-term growth algorithm. Despite challenges like a higher tax rate, McCormick’s alignment with consumer trends for healthier and more affordable meals positions it well against broader industry weaknesses. Key indicators such as market share improvements and operating margin expansion further support the Buy rating.
Moskow covers the Consumer Defensive sector, focusing on stocks such as McCormick & Company, Vital Farms, and Conagra Brands. According to TipRanks, Moskow has an average return of 2.5% and a 49.65% success rate on recommended stocks.
In another report released on March 11, Jefferies also reiterated a Buy rating on the stock with a $98.00 price target.
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