JPMorgan upgrades McCormick stock to Overweight on growth prospects

Investing.com - JPMorgan upgraded McCormick & Company (NYSE:MKC) from Underweight to Overweight on Wednesday, raising its price target to $83.00 from $69.00.

The upgrade comes after MKC shares pulled back 11% since early July, compared to flat performance for median large-cap food stocks during the same period, creating what JPMorgan considers an attractive entry point. The stock has seen a total return of -11.78% over the past six months.

JPMorgan cited McCormick’s impressive track record of driving earnings growth both organically and through acquisitions, noting the company operates in attractive center store categories like spices and hot sauces that are likely to grow over time.

The firm acknowledged McCormick’s valuation remains lofty compared to peers, as has been the case for nearly a decade, but believes this premium is justified by the company’s ability to sustain positive volume growth over time.

JPMorgan also expressed confidence in McCormick’s ability to mitigate tariffs, pointing to recent upward inflection in pricing across the spices and seasonings categories as supporting evidence.

In other recent news, McCormick & Company reported its second-quarter earnings for 2025, revealing an adjusted earnings per share of $0.69, surpassing analysts’ forecasts of $0.66. The company met revenue expectations with $1.66 billion, which contributed to positive investor sentiment. UBS maintained its Neutral rating on McCormick, with a price target of $83.00, following the earnings report. The company’s Consumer segment showed strong top-line results, with volume and mix growth exceeding 3%. However, the Flavor Solutions business experienced softer organic performance. Bernstein SocGen Group raised its price target for McCormick to $102.00 from $101.00, describing the company’s second-quarter results as "solid." McCormick reiterated its full-year 2025 guidance, despite concerns over tariff impacts on its global supply chain. Meanwhile, TD Cowen adjusted its price target to $82.00 from $85.00, citing anticipated tariff impact costs as a factor for the revision. The firm still maintains a Buy rating on the stock, projecting 7% earnings growth for fiscal year 2026.

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