In a report released today, Peter Galbo from Bank of America Securities maintained a Buy rating on McCormick & Company (MKC – Research Report), with a price target of $96.00.
Peter Galbo has given his Buy rating due to a combination of factors that highlight McCormick & Company’s robust growth prospects and strategic initiatives. The company has outlined a strong long-term growth algorithm, projecting net sales growth of 4-6%, operating income growth of 7-9%, and EPS growth of 9-11% by 2028, driven by a blend of organic growth, innovation, and strategic acquisitions. This solidifies McCormick’s position as a leader in the packaged food industry.
Furthermore, McCormick’s focus on expanding its flavor capabilities, particularly in the high-demand global heat platform, which accounts for 20% of sales and is growing significantly faster than non-heat platforms, supports its growth trajectory. The company’s prudent capital allocation strategy, emphasizing strong cash flow generation, shareholder returns, and strategic acquisitions, further strengthens its future performance outlook. These elements collectively underpin Peter Galbo’s confidence in McCormick’s ability to achieve superior financial performance and justify the Buy rating with a price objective of $96.
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McCormick & Company (MKC) Company Description:
Founded in 1889, McCormick & Co., Inc. is a Maryland-based food company, which is engaged in the manufacturing, marketing and distribution of spices, seasoning mixes, condiments and other flavorful products to retail outlets, food manufacturers and foodservice businesses. It operates through the following two segments: Consumer and Flavor Solutions.
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