Analysts favor “hold” for K and MKC stock
Of the 21 analysts covering Kellogg (K) stock, 12 recommend “hold,” six recommend “buy,” and three recommend “sell.” Their target price of $69.50 per share was 1.4% lower than its July 9 closing price of $70.47. Kellogg’s financial performance has been impressive, but analysts expect its list price adjustment to hurt sales and profitability in the near term, and persistent challenges such as transportation costs and commodity inflation could remain a drag.
For McCormick (MKC) stock, nine analysts recommend “hold,” two recommend “buy,” and two recommend “sell.” Analysts’ average target price of $111.33 for MKC stock implies a 7.0% downside based on its July 9 closing price of $119.68. McCormick’s stellar sales and earnings growth are expected to boost its stock, while higher interest costs and outstanding shares due to financing the RB Foods acquisition are expected to hurt profitability.
Analysts favor “buy” for Mondelēz stock
Of the 22 analysts covering Mondelēz (MDLZ) stock, 17 recommend “buy,” and five recommend “hold.” Their target price of $48.48 for MDLZ implies a 15.0% upside to its July 9 closing price of $42.17.
Mondelēz is expected to maintain its sales growth momentum in future quarters and mark double-digit bottom-line growth. However, tough year-over-year comparisons and costs headwinds could play spoilsport.