KeyBanc Downgrades McCormick to “Hold” On Valuation Call (MKC)
Early on Monday, analysts at KeyBanc downgraded spice maker McCormick & Company (MKC) due to its current valuation.
The analysts downgraded MKC from “Buy” to “Hold.”
“We downgrade MKC to HOLD from BUY owing primarily to concerns regarding valuation (MKC is currently trading at the high end of its historical range) and, to a lesser extent, its exposure to China, where food consumption is under pressure due to food safety and disease issues. In addition, it ranked only 6 of 12 in our stock selection screen,” said a KeyBanc analysts.
McCormick shares were down 42 cents, or -0.58%, during morning trading on Monday. The stock is up +13.14% year-to-date.
The Bottom Line
Shares of McCormick (MKC) have a dividend yield of 1.88% based on Friday’s closing price of $72.30 and the company’s annualized dividend payout of $1.36 per share.
McCormick & Company (MKC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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