Bank of America Upgrades McCormick with $100 Price Target
Overview
Reason Behind the Upgrade
Analyst Peter Galbo said the company is set for smooth sailing as volume pressures have eased and margins and costs improved. “Across our coverage universe, investors are focused on the transition from price led sales growth to volume led. In our view, MKC holds potential to be a ‘winner’ in this debate,” the analyst said, calling the stock a “growthy staple.”
Stock Performance
Shares of McCormick are up more than 6% year to date, outperforming the Consumer Staples Select Sector ETF (XLP), which is down 1.3%. MKC YTD mountain McCormick stock has ticked up more than 7% so far this year. Galbo said this outperformance should continue.
Sales Forecast
The analyst also sees strong sales in key segments such as America consumer and EMEA flavor solutions.
Conclusion
“We expect potential for positive estimates revisions and a market bias for consumer ‘growth’ stocks could drive valuation back to its historical mid-30’s P/E over the next 12 months,” he said. — AsumeTech’s Michael Bloom contributed to this report.