Deutsche Bank Raises MKC Target To $49, Maintains Buy Rating

Deutsche Bank is raising its PT on McCormick & Company

. “Our new target of $49 (up from $47) 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),” Deutsche Bank writes. With regard to reiterating its Buy rating, Deutsche Bank said: “Our opinion is based on share leadership, solid profitability, strong B/S and FCF. Although inputs are volatile, consumers favor McCormick products and Industrial customers are gearing up new product efforts. Thus we believe LT goals (4-6% sales, 9-11% EPS) can be achieved and valuation can expand.” McCormick & Company closed Wednesday at $46.25.