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Will Analysts Change Their Rating on MKC Stock after 2Q Results?

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Jul. 3 2017, Updated 9:37 a.m. ET

Analysts maintain a neutral stance

Most of the analysts covering McCormick (MKC) stock recommend a “hold.” However, the company’s strong quarterly results, industry-leading growth amid challenges, and expectations of a better second half on the back of innovative product pipelines and expanded distribution might lead analysts to change their outlook on the stock. However, McCormick stock is trading at a higher valuation than peers, which is keeping investors at bay.

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Analysts currently maintain a consensus score of 2.9 on McCormick stock on a scale of one (“strong buy”) to five (“strong sell”). Of the 14 analysts covering the stock, 14.0% rated it a “buy,” 79.0% maintained a “hold,” and 7.0% recommended a “sell.” As of June 29, 2017, the company was trading about 3.3% below the analysts’ 12-month target price of $98.54.

Peer comparison

Analysts currently maintain a “neutral” outlook on General Mills (GIS) and J. M. Smucker (SJM) stock, as persisting softness across the food industry is taking a toll on their performance. As for General Mills, 25.0% of the 20 analysts who have rated GIS stock maintain a “buy” rating, 65.0% recommend a “hold,” and 10.0% rated it a “sell.”

Of the 19 analysts covering J.M. Smucker (SJM), 26.0% rated it a “buy,” 58.0% maintained a “hold,” and 16.0% recommended a “sell.”

Meanwhile, the majority of analysts recommend a “buy” for Conagra (CAG) stock. 64% of the 14 analysts rated it a “buy,” 22.0% recommended a “hold,” and 14.0% maintained a “sell” rating.

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