Peter Galbo, an analyst from Bank of America Securities, reiterated the Buy rating on McCormick & Company (MKC – Research Report). The associated price target remains the same with $96.00.
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Peter Galbo has given his Buy rating due to a combination of factors including McCormick & Company’s strong second-quarter performance and its ability to manage tariff impacts effectively. The company reported adjusted earnings per share (EPS) of $0.69, surpassing both Bank of America’s estimate of $0.65 and the consensus of $0.66. This outperformance was driven by higher sales volumes in both of its segments and effective management of selling, general, and administrative expenses.
Additionally, McCormick has maintained its full-year 2025 EPS guidance of $3.03 to $3.08, even after accounting for the anticipated $50 million impact from tariffs. The company plans to offset these costs through strategic pricing, cost savings, and sourcing efforts. The reaffirmation of its guidance and the company’s proactive measures to mitigate tariff impacts are expected to be well-received by the market. Furthermore, McCormick’s valuation is considered reasonable, trading within its historical range, and is supported by positive developments such as recovery in China and improved cost and margin outlooks.
Galbo covers the Consumer Defensive sector, focusing on stocks such as McCormick & Company, Conagra Brands, and General Mills. According to TipRanks, Galbo has an average return of 1.6% and a 52.76% success rate on recommended stocks.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $90.00 price target.