In a report released today, Robert Moskow from TD Cowen maintained a Buy rating on McCormick & Company (MKC – Research Report), with a price target of $90.00.
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Robert Moskow’s rating is based on the positive outlook McCormick & Company has demonstrated, particularly in their Consumer division. The company’s management has maintained an optimistic perspective following their recent earnings call, supported by robust growth in the U.S. herbs and spices category as consumers continue to seek healthier and more affordable meal options. McCormick has achieved a notable increase in their volume share, attributed to strategic initiatives such as new product introductions, effective price-gap management, packaging innovations, and advertising efforts.
Furthermore, McCormick’s growth prospects are bolstered by strong demand in the fresh aisle, which benefits their Americas Consumer division. Although the Flavor Solutions segment has encountered some challenges, the company is experiencing growth in emerging categories like branded foodservice and protein shakes. McCormick aims to return to a 2-3% volume growth by 2025 and work towards an 18% operating margin target by 2028, with flexibility in their guidance to reinvest in growth opportunities as they arise.
In another report released on January 29, Bernstein also assigned a Buy rating to the stock with a $95.00 price target.
Based on the recent corporate insider activity of 87 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.