In a report released yesterday, Peter Galbo from Bank of America Securities maintained a Buy rating on McCormick & Company, with a price target of $96.00.
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Peter Galbo has given his Buy rating due to a combination of factors affecting McCormick & Company’s financial outlook. Despite facing inflationary pressures that have necessitated a reduction in earnings estimates, McCormick’s third-quarter performance exceeded expectations, with strong sales and effective management of selling, general, and administrative expenses. The company has also adjusted its tariff impact estimates for the upcoming fiscal year, which, while challenging, are expected to be largely offset through strategic measures.
Looking forward, McCormick anticipates continued sales growth driven by volume, particularly in its Consumer segment, and expects to benefit from pricing adjustments related to tariffs and its Flavor Solutions segment. Although the gross margin outlook for the year has been lowered, improvements are expected in the fourth quarter due to mitigation efforts and seasonal factors. Additionally, McCormick is taking proactive steps to manage inflation impacts through productivity savings and supply chain initiatives, which supports the Buy rating despite a slightly reduced price objective.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $78.00 price target.
MKC’s price has also changed moderately for the past six months – from $73.920 to $65.620, which is a -11.23% drop .