Credit Suisse Upgrades McCormick & Company (MKC) to Outperform

October 25, 2016 6:50 AM EDT
Get Alerts MKC Hot Sheet
Price: $93.06 --0%

Rating Summary:
    4 Buy, 7 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 31 | New: 34
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Credit Suisse upgraded McCormick & Company (NYSE: MKC) from Neutral to Outperform with a price target of $110.00, saying market share is poised to accelerate in a growth category.

Analyst Robert Moskow commented, "We are upgrading McCormick to outperform and raising our FY 17 estimates above consensus. The stock's recent sell-off gives investors a unique opportunity to own one of the truly competitively advantaged names in the food space while it is still in the early innings of capitalizing on structural demand growth in the spices and seasonings category (up 6% past 52 weeks). With only one other outperform rating on the stock, we see positive revisions to ratings and forecasts based on 1) category growth driven by Millennials cooking more meals from scratch, 2) market share acceleration in the U.S. driven by product innovation and stronger relationships with retailers, and 3) re-acceleration of gross margin expansion. In addition, we believe new CEO Lawrence Kurzius' more aggressive approach to M&A increases the probability of a highly accretive deal in FY 17."

For an analyst ratings summary and ratings history on McCormick & Company click here. For more ratings news on McCormick & Company click here.

Shares of McCormick & Company closed at $93.88 yesterday.

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