Mccormick Stock Fair Value – CFRA Upgrades McCormick & Company to Buy with $85 Price Target
April 3, 2024
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MCCORMICK ($NYSE:MKC): CFRA, a leading independent research provider, made a significant change to their rating on McCormick & Company on Tuesday. The company’s rating was upgraded from Hold to Buy, which is seen as a positive change for investors. Along with this upgrade, CFRA also raised its price target for the company to $85.00, indicating further potential for growth in the stock. For those unfamiliar with McCormick & Company, it is a global leader in the flavor industry, providing spices, herbs, seasonings, and other food products to consumers and businesses alike. As a result, CFRA’s upgrade and price target increase hold significant weight. CFRA’s decision to upgrade McCormick & Company to a Buy rating is likely based on the company’s recent performance and future outlook. In its latest earnings report, the company reported strong revenue and earnings growth, exceeding analysts’ expectations. The upgrade to Buy also suggests that CFRA sees potential for further growth in McCormick & Company. This could be due to the company’s recent acquisitions and strategic partnerships that have expanded its product offerings and global reach. In addition, with more people cooking at home during the pandemic, there has been an increased demand for spices and seasonings, which could positively impact the company’s sales. The new price target of $85.00 set by CFRA also highlights their confidence in the stock’s future performance. This represents a significant increase from the current stock price and implies potential upside for investors.
However, it is important to note that price targets are not guarantees and should not be the sole factor in making investment decisions. This change reflects the company’s strong performance and potential for continued growth in the future. As always, it is important for investors to conduct their own research and consider all factors before making any investment decisions.
Stock Price
On Wednesday, CFRA, a leading independent investment research firm, announced that it has upgraded its rating on McCormick & Company’s stock from Hold to Buy. This news caused MCCORMICK‘s stock to open at $77.8, slightly higher than the previous day’s closing price of $77.3.
However, by the end of the day, the stock closed at $76.0, representing a decrease of 1.6%. This upgrade from CFRA comes as a positive sign for MCCORMICK as it indicates that the investment research firm believes the company’s stock has strong potential for growth. By upgrading the stock to a Buy rating, CFRA is essentially recommending that investors should consider purchasing MCCORMICK shares. There are several factors that may have contributed to CFRA’s decision to upgrade MCCORMICK’s stock. One factor could be the company’s strong financial performance in recent years. MCCORMICK has consistently reported positive earnings growth and has outperformed industry averages in terms of profitability and revenue growth. This consistent performance is likely seen as a sign of a stable and well-managed company by CFRA. Moreover, as a leading provider of spices, seasoning mixes, condiments, and other flavoring products, MCCORMICK has a strong presence in both the consumer and foodservice markets. The company’s products are known for their high quality and are trusted by consumers all over the world.
In addition, MCCORMICK has been actively expanding its portfolio through strategic acquisitions, further strengthening its position in the market. CFRA’s upgrade is also in line with the overall positive sentiment towards MCCORMICK’s stock in the market. This positive trend is likely to continue, especially with the recent boost from CFRA’s upgrade. In conclusion, CFRA’s decision to upgrade MCCORMICK’s stock to Buy and raise its price target to $85 demonstrates confidence in the company’s growth potential and financial performance. With a strong presence in the market, a history of consistent growth, and a positive market sentiment, MCCORMICK appears to be well-positioned for future success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mccormick. More…
| Total Revenues | Net Income | Net Margin |
| 6.66k | 680.6 | 10.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mccormick. More…
| Operations | Investing | Financing |
| 1.24k | -260.5 | -1.18k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mccormick. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.86k | 7.78k | 18.86 |
Key Ratios Snapshot
Some of the financial key ratios for Mccormick are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.0% | 0.2% | 15.1% |
| FCF Margin | ROE | ROA |
| 14.6% | 12.4% | 4.9% |
Analysis – Mccormick Stock Fair Value
As an analyst at GoodWhale, I have conducted an in-depth analysis of MCCORMICK‘s financials to determine its intrinsic value and current stock price. After careful evaluation, we have determined that the intrinsic value of MCCORMICK share is approximately $86.8. Our valuation process involves using our proprietary Valuation Line, which takes into account various financial metrics such as revenue, earnings, and cash flow, along with macroeconomic factors. Based on this calculation method, we have arrived at a fair value for MCCORMICK’s stock. Currently, MCCORMICK’s stock is trading at $76.0, which indicates that it is undervalued by 12.4%. This presents a potential opportunity for investors looking to purchase shares in a strong and stable company. MCCORMICK is a well-established company in the food industry, known for its high-quality spices and seasonings. It has a strong track record of consistent revenue growth and healthy profit margins. In addition, the company has a solid balance sheet with a manageable level of debt. Furthermore, MCCORMICK has a global presence, with a strong foothold in both developed and emerging markets. This provides the company with diversification and growth opportunities. In conclusion, our analysis shows that MCCORMICK’s stock is currently undervalued and presents a potential buying opportunity for investors. GoodWhale remains bullish on the company’s long-term prospects and believes that it has the potential to generate strong returns for shareholders. More…
Peers
The competition in the spice and flavoring industry is heating up. McCormick & Co Inc, the world’s largest spice company, is facing stiff competition from Nestle SA, Kellogg Co, and Campbell Soup Co. all of which are looking to gain a larger share of the $5 billion global market. While McCormick has long been the leader in the space, its competitors are quickly catching up, thanks to their strong brands and deep pockets.
– Nestle SA ($LTS:0RR6)
Nestle SA is a Swiss multinational food and drink processing conglomerate. The company has a market cap of 298.21B as of 2022 and a Return on Equity of 14.82%. The company was founded in 1866 by Henri Nestle and is headquartered in Vevey, Switzerland. Nestle SA is the world’s largest food company, with over 2,000 brands and operations in 189 countries. The company’s products include baby food, bottled water, cereals, coffee, dairy products, ice cream, pet food, and snacks.
– Kellogg Co ($NYSE:K)
Kellogg Co is a publicly traded company with a market capitalization of 26.13 billion as of 2022. The company has a return on equity of 33.71%. Kellogg Co is engaged in the manufacture and marketing of cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The company’s products are marketed under the Kellogg’s, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, Murray, Austin, Morningstar Farms, and Kashi brand names.
– Campbell Soup Co ($NYSE:CPB)
Campbell Soup Company is a food and beverage company. It is engaged in manufacturing and marketing branded convenience food products. The company offers soups, sauces, beverages, biscuits, confectioneries, and prepared dishes. It operates through the following segments: Americas Simple Meals and Beverages; Global Biscuits and Snacks; and Campbell Fresh. The Americas Simple Meals and Beverages segment includes soups and sauces in the United States, as well as simple meals, shelf-stable beverages and organic products in the United States and Canada. The Global Biscuits and Snacks segment comprises biscuits, cookies, crackers, salty snacks, and other snacks in Australia, Asia Pacific, Canada, Europe, and Latin America. The Campbell Fresh segment offers refrigerated soups, pasta, sauces, sandwiches, Bolthouse Farms beverages and salad dressings, refrigerated and frozen juices, carrots, and organic salads in the United States. The company was founded by Joseph A. Campbell in 1869 and is headquartered in Camden, NJ.
Summary
On Tuesday, CFRA upgraded its rating on McCormick & Company from Hold to Buy and raised the price target to $85.00. This indicates that the analyst expects the stock to outperform in the future and reach a higher valuation. This move follows a recent earnings report that showed strong growth for the company.
CFRA’s increased confidence in McCormick is likely due to its strong financial performance and market position as a leading producer of spices and seasonings. Investors may want to take note of this upgrade and consider adding McCormick to their portfolio as it shows potential for growth and solid returns.
