McCormick price target raised to $102 from $101 at Bernstein

Investing.com - Bernstein SocGen Group raised its price target on McCormick & Company (NYSE:MKC) to $102.00 from $101.00 on Friday, while maintaining a Market Perform rating on the spice maker’s stock.

The price target adjustment follows McCormick’s second-quarter 2025 results, which Bernstein described as "solid." The company reiterated its full-year 2025 guidance despite concerns about tariff impacts on its global supply chain. With a market capitalization of $20.59 billion and annual revenue of $6.74 billion, McCormick maintains a strong market position.

McCormick sources approximately 17,000 ingredients from roughly 90 different countries, making its supply chain more globally exposed than many other food producers. The company faces a 10% tariff on imports from most countries and an additional 30% tariff on imports from China.

Bernstein noted these tariffs represent an incremental 2% increase to McCormick’s cost of goods sold on an annualized basis. The research firm indicated that McCormick’s ability to maintain its guidance while absorbing these tariff impacts demonstrates "the strength of the underlying business."

The price target increase reflects Bernstein’s view that McCormick has successfully addressed what it called "a key concern among investors heading into the quarter" regarding the company’s ability to manage tariff pressures. For deeper insights into McCormick’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes additional metrics and expert analysis.

In other recent news, McCormick & Company reported stronger-than-expected earnings for the second quarter of 2025, with an adjusted earnings per share (EPS) of $0.69, surpassing the analysts’ forecast of $0.66. The company’s revenue met expectations at $1.66 billion, and its Consumer segment showed a notable 3% growth in volume and mix. McCormick reaffirmed its full-year earnings guidance for fiscal 2025, which was a positive surprise for investors amid concerns about cost and tariff challenges. UBS maintained its Neutral rating on McCormick, noting that the company’s revenue assumptions for the year appear conservative, especially in the Flavor Solutions segment. Despite the improved outlook, UBS remains cautious due to McCormick’s premium valuation compared to its peers. The company also returned $242 million to shareholders via dividends and reported a cash flow from operations of $161 million. McCormick’s strategic initiatives and strong performance in key segments contributed to a positive market reaction, reflecting investor confidence in the company’s ability to navigate economic challenges.

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