The investment bank downgraded the stock to "hold" from "buy" with a price target of $66, noting the company trades at a premium valuation but is facing tough U.S. fundamentals.
On Wednesday, the Sparks, MD.-based business said it expects full-year earnings between $3.22 and $3.29 a share with revenue growth of 3% to 5%. Analysts had forecast earnings of $3.44 a share with 6% sales growth. Management anticipates first-quarter earnings of around 57 cents a share, flat on the year-ago quarter, compared to the 64 cents estimated by analysts.
TheStreet Ratings team rates MCCORMICK & CO INC as a Buy with a ratings score of A-. The team has this to say about their recommendation:"We rate MCCORMICK & CO INC (MKC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
- You can view the full analysis from the report here: MKC Ratings Report
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