Deutsche Bank Cuts McCormick & Company (MKC) to Hold

January 30, 2014 6:56 AM EST
Get Alerts MKC Hot Sheet
Price: $92.68 +1.43%

Rating Summary:
    4 Buy, 7 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Deutsche Bank downgraded McCormick & Company (NYSE: MKC) from Buy to Hold with a price target of $66.00 (from $73.00).

Analyst Eric Katzman said, "After recommending McCormick for the last 17 years and giving the benefit of the doubt over the last year as fundamentals weakened, we now lower our opinion to HOLD. Despite category leadership, decent LT prospects and solid B/S, tough US fundamentals vs. valuation premium (+15% to peers) move us to the sidelines."

"When even a highly focused company like McCormick cannot deal with consumer / retail fragmentation, it is clear that no player is immune to US / EU challenges. After 10+ years of expanding its presence in niches (spices, DSM, marinades, grilling, ethnic), McCormick is struggling as bifurcation (see our updated Quadrant Analysis) occurs at the high and low end of the market," he added.

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 $65.30 yesterday.

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