Analysts maintain a neutral view
Most of the analysts maintain a neutral outlook on McCormick (MKC) stock despite the company’s stellar sales, EPS growth rate, and upbeat outlook. The company’s top line is expected to benefit from improved volumes driven by strength in its base business and new product launches. Plus, higher pricing is also expected to drive its organic sales growth rate. Moreover, the company’s earnings are projected to see double-digit growth, reflecting sales leverage and increased cost savings from its CCI program.
However, analysts remain on the sidelines given the increased level of debt following the RB Foods acquisition. Also, reduction in shelf space at a large retailer in the UK could pose challenges.
Rating and price target summary
Of the 14 analysts providing recommendations on McCormick stock, 72.0% maintained a “hold” rating. Meanwhile, 21.0% recommended a “buy,” and 7.0% suggested a “sell.” Moreover, analysts maintain a price target of $107.38 per share on MKC stock, which is roughly on par with its closing price on Tuesday, March 20, 2018.