McCormick & Company (MKC) PT Raised to $86 at Jefferies

Jefferies analyst Rob Dickerson raised the price target on McCormick & Company (NYSE: MKC) to $86.00 (from $85.00) while maintaining a Hold rating.

The analyst comments "Positive vol/mix encouraging with momentum into Q4. MKC posted + y/y vol/mix for the first quarter in almost three years, driven by the Consumer segment, where shifts to at-home dining (especially in the U.S.) led to +1% volume/mix y/y. Price gap management essentially offset, however, and left Consumer segment sales up only 20 bps y/y. As mgmt. leans into promos, marketing, and general merchandising during the core Q4 holiday period, we expect to see slightly accelerating volume growth as we move through Q4, esp. given the easier Americas Q4 lap relative to Q3. U.S. consumers have shifted recently to incremental store-perimeter shopping, leaving MKC potentially well positioned to leverage seasoning needs; they just need the proper price points to drive that demand. On the Flavor Solutions side, flat y/y volume seems a win given well-noted QSR traffic pressure in the U.S. and elsewhere. Mgmt spoke to branded foodservice and limited-time-offerings driving excitement, especially in the heat segment."

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