JPMorgan Upgrades McCormick & Company (MKC) to Overweight

JPMorgan analyst Thomas Palmer upgraded McCormick & Company (NYSE: MKC) from Underweight to Overweight with a price target of $83.00 (from $69.00).

The analyst comments: "We rate MKC shares Overweight. The company has an impressive track record of driving earnings growth over time, both organically and via M&A. It operates in attractive center store categories (spices, hot sauces) that are likely to grow over time. The valuation is lofty versus peers, as has been the case for nearly a decade, but we think this is justified by the company’s standing as among the few food companies that are likely to sustain positive volume growth over time. Tactically, we think the stock’s 11% pullback since the start of July (vs. 0% for the median large cap food stock) creates an attractive entry point. Additionally, we think the company’s argument that it can mitigate tariffs is bolstered by the recent upward inflection in pricing across the spices and seasonings categories."

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 $69.05 yesterday.

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