Street View: Strong quarter fails to ease inflation worries for McCormick

By Reuters News

** Cholula hot sauce maker McCormick MKC.N on Thursday beat third-quarter results, as higher prices for seasonings and sauces helped offset softer demand due to elevated gas prices and cyclospora outbreak that weighed on volumes

** Median PT of 16 brokerages covering stock is $55 - data compiled by LSEG


INFLATION OVERSHADOWS STRONG QUARTER


**J.P. Morgan ("overweight," PT: $55) says inflation is rising faster than expected and is further cooling sentiment toward McCormick shares, though co remains constructive on long-term value creation potential of pending Unilever Foods combination

** Barclays says co remains on track to meet annual targets, but softer consumer demand, weaker foodservice activity and rising costs are making co's path more challenging

** Stifel ("hold," PT: $48) says slower-than-expected volume recovery in Americas and higher inflation are weighing on outlook, despite strong Q3 cost savings and profit growth

** TD Cowen ("hold," PT: $48) says productivity savings and pockets of international strength helped offset weak Americas demand in Q3, but higher inflation and consumer pressure are raising risks to FY27 earnings and combined co's longer-term growth outlook

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.