McCormick stock tariff impact in focus as Bernstein reiterates rating

Published 17/06/2025, 17:02
McCormick stock tariff impact in focus as Bernstein reiterates rating

Bernstein SocGen Group reiterated an Outperform rating and $101.00 price target on McCormick & Company (NYSE: NYSE:MKC) stock Monday, highlighting the spice maker’s exposure to tariffs ahead of its upcoming earnings call next week.

The research firm identified McCormick as "likely to be the most exposed company" in its coverage universe to tariffs, with potential for a 3% increase to cost of goods sold as a result of tariffs currently in place.

Bernstein expressed hope that McCormick would provide comprehensive details about the tariff impact during the earnings call, including both the gross expected impact and the net effect after implementing mitigation strategies.

The firm suggested that greater clarity around the expected range of tariff impacts could build investor confidence in McCormick, describing it as "a bright spot where investors would like to put money to work once the tariff question is answered."

Bernstein recommended preparing to take a position either before or after the quarterly results are released, citing potential for "an acceleration in EPS growth (excluding tariffs) over the course of the next 3 years."

In other recent news, McCormick & Company is preparing to report its fiscal second-quarter 2025 earnings, with Citi projecting organic sales growth and earnings per share slightly below consensus estimates. UBS initiated coverage of McCormick with a neutral rating and a price target of $83, noting low-single-digit volume growth but expressing concerns about near-term financial projections due to tariff impacts. Meanwhile, Bernstein has maintained an Outperform rating with a $101 price target, citing a potential reformulation trend in the U.S. packaged foods industry that could benefit McCormick.

In corporate developments, McCormick announced the planned retirement of its Chief Growth Officer, Kasey Jenkins, in early 2026. Jenkins has been with the company for over three decades, contributing significantly to McCormick’s global finance and supply chain operations. Additionally, McCormick’s shareholders recently approved executive pay and elected directors during the company’s Annual Meeting of Stockholders.

The board confirmed Ernst & Young LLP as its independent auditor for the upcoming fiscal year. These developments reflect McCormick’s ongoing efforts to engage with shareholders and adapt to changing industry dynamics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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