Analysts’ recommendations for McCormick
Wall Street analysts provided target prices for the next 12 months and ratings after McCormick reported its fiscal 4Q15 results on January 28. Out of ten analysts surveyed by Bloomberg, seven rate MKC a “hold.”
Consensus rating for McCormick
Approximately 25% of analysts rate McCormick a “buy,” 58% rate it a “hold,” and 17% rate it a “sell.” The average broker target price for MKC now is $87.13, up from $85.86 before the fiscal 4Q15 results. This price is now 0.96% lower than the closing price of $87.97 on January 29.
The company’s peers ConAgra Foods (CAG), Flowers Food (FLO), Dean Foods (DF), and General Mills (GIS) have average broker target prices of $45.6, $24.2, $20.2, and $57, respectively. These figures imply returns of ~10%, 18%, 1.1%, and 0.86%, respectively, over the next 12 months.
McCormick is a component of the Guggenheim S&P Equal Weight Consumer Staples ETF (RHS). RHS invests 2.5% of its portfolio in MKC. It also invests 2.7% in CAG.
Analysts’ target prices for McCormick
Bernstein gave McCormick the most optimistic target price of $100. This target price is 14% higher than the January 29 closing price of $87.97. Bernstein rates McCormick a “strong buy.”
BB&T Capital Markets also provided an optimistic price target of $95, implying returns of ~8% in the next 12 months. They rate MKC a “strong buy.”
J.P. Morgan had downgraded McCormick from “neutral” to “underweight” and reduced its price target from $82 to $76 per share before the fiscal 4Q15 earnings release. It increased its target price from $76 to $79 after the earnings release but still rates the stock a “strong sell.”
Stifel, Edward Jones, Gabelli & Co, and Morningstar offered no target prices for the stock. However, all of them rated McCormick a “hold.”