Analyst Robert Moskow of TD Cowen maintained a Buy rating on McCormick & Company, retaining the price target of $82.00.
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Robert Moskow has given his Buy rating due to a combination of factors that highlight McCormick & Company’s strategic positioning and resilience in a challenging market environment. Despite a slight miss in organic sales and a downward revision in EPS guidance due to inflation and tariffs, the company has demonstrated positive volume growth, which is notable in a weak consumer packaged goods sector. Moskow appreciates the company’s focus on maintaining volume growth by prioritizing affordability and price gaps, which is expected to keep volume positive in the coming fiscal year.
Furthermore, McCormick’s Consumer Americas division showed solid growth, supported by trends such as consumers cooking more at home and experimenting with new flavors. The company is also expected to benefit from holiday merchandising and total distribution points gains in the fourth quarter. Additionally, efforts to mitigate tariff impacts through productivity initiatives and strategic pricing are anticipated to support a rebound in gross margins, further justifying the Buy rating.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $89.00 price target.