Analyst Alexia Burland Howard from Bernstein maintained a Buy rating on McCormick & Company (MKC – Research Report) and increased the price target to $102.00 from $101.00.
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Alexia Burland Howard’s rating is based on McCormick & Company’s ability to maintain its financial guidance despite facing significant tariff challenges. The company sources a vast array of ingredients globally, which exposes it to international trade tensions. However, McCormick has successfully reiterated its FY25 guidance, showcasing resilience and operational strength in managing a 10% tariff on most imports and an additional 30% on imports from China, which only marginally impacts its cost of goods sold.
Moreover, McCormick’s financial performance has been robust, with consumer organic sales growth surpassing that of its Flavor Solutions segment, although the latter still achieved a notable 13% profit growth. This indicates the company’s capacity to enhance margins even amid volume weaknesses in certain areas. The management’s confidence in achieving sales growth and increased operating income further supports the Buy rating, as does the slight increase in the price target based on improved EBITDA estimates.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $85.00 price target.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MKC in relation to earlier this year.