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Citi lowered its price target on McCormick & Company (NYSE:MKC) to $77.00 from $80.00 on Tuesday, while maintaining a Neutral rating on the spice and flavor company’s stock.
The research firm cited potential risks to McCormick’s fiscal year 2025 outlook, primarily related to tariffs, which could lead to lower earnings estimates. Supporting this view, InvestingPro data shows that four analysts have recently revised their earnings estimates downward. Citi noted these concerns appear to be partially reflected in McCormick’s share price, which has declined since early April, with a 6.93% drop over the past six months.
McCormick is scheduled to report its fiscal second-quarter 2025 earnings on Thursday, June 26. Citi projects organic sales growth and earnings per share slightly below the consensus estimates tracked by Visible Alpha.
The bank’s analysis suggests potential upside in McCormick’s Consumer segment will likely be offset by weakness in the company’s Flavor Solutions division. Citi also expects a higher tax rate to impact the company’s overall performance.
McCormick, known for its spices, seasonings, and flavor products, has faced challenges in recent months as global trade tensions have raised concerns about input costs and supply chain pressures across the food manufacturing sector.
In other recent news, McCormick & Company has been the focus of various developments. UBS initiated coverage on the company with a neutral rating and set a price target of $83.00, noting low-single-digit volume growth and potential tariff impacts affecting near-term financial projections. Meanwhile, Bernstein analysts maintained an Outperform rating with a $101.00 price target, highlighting a potential reformulation trend in the U.S. packaged foods industry that could benefit McCormick. In contrast, Argus downgraded McCormick from "Buy" to "Hold," citing concerns over rising input costs and weakened restaurant foot traffic affecting the Flavor Solutions segment.
Additionally, McCormick’s Chief Growth Officer, Kasey Jenkins, announced plans to retire in early 2026, after over three decades with the company. During her tenure, Jenkins contributed significantly to the company’s strategic development and shareholder value creation. Furthermore, McCormick’s shareholders recently approved executive compensation and elected eleven directors at the Annual Meeting of Stockholders. The appointment of Ernst & Young LLP as the independent auditor for the upcoming fiscal year was also confirmed. These developments reflect McCormick’s ongoing efforts to engage shareholders and maintain transparency in its operations.
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