In a report released today, Alexia Burland Howard from Bernstein maintained a Buy rating on McCormick & Company, with a price target of $102.00.
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Alexia Burland Howard has given her Buy rating due to a combination of factors, primarily focusing on the growth and profitability of McCormick & Company’s Flavors sub-segment. Over the past decade, this segment has experienced significant revenue growth, with a compound annual growth rate of 8%, making it the most profitable category within the company’s broader Flavor Solutions segment. The expansion of the Flavors sub-segment’s market share from 48% in 2015 to 56% today highlights its increasing importance to the company’s overall performance.
Additionally, McCormick has outpaced its global competitors in terms of growth, increasing its market share from 7.4% in 2016 to 9.9% currently. This impressive growth trajectory is attributed to strategic focus and market conditions, such as Walmart’s recent announcement to eliminate certain additives from its private label products, which could further benefit McCormick. These factors, along with a maintained Outperform rating and a target price of $102.00, underscore the positive outlook for McCormick’s stock.
In another report released on October 1, TD Cowen also reiterated a Buy rating on the stock with a $82.00 price target.