Deutsche Bank Reports F1Q11 Earnings Preview On McCormick

According to Deutsche Bank, McCormick

gave a F1Q11 earnings preview. Deutsche Bank reported that it believes LT goals (4-6% sales, 9-11% EPS) can be achieved and thus valuation can expand, hence its BUY opinion. “In addition share leadership, new products, solid profitability, strong B/S and FCF look compelling. While inputs are volatile and are a risk, we still favor McCormick's stock. Our new $51 target (from $49) is based on an equally weighted avg. of 3 valuation techniques (DCF analysis, IVCC, traditional multiples): refer to “Valuation & Risks” below for details. Risks: competition (branded, pvt.lbl, industrial), FX (largely euro), cost volatility (pepper, vanilla, energy).” McCormick closed yesterday at $49.06.