11:05 AM EDT, 03/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target by $12 to $85, 27x our FY 25 (Nov.) EPS of $3.16 (up from $2.96; FY 24 up to $2.88 from $2.81) vs. the 30x five-year average forward P/E. FQ1 (Feb-Q) adj-EPS of $0.63 (+7% Y/Y) beat by $0.06 on revenues of $1,603M (+2% Y/Y), $51M above consensus. MKC saw a sequential improvement in volume sales (-1% Y/Y vs. -3% Y/Y in FQ4), which we expect will continue this year, especially if MKC regains some of the lost distribution it experienced over the last few years. MKC is also investing in marketing and innovation and looking to narrow price gaps to store brands. Gross margins grew 140 bps Y/Y to 37.4%, but due to SG&A de-leverage (from higher marketing), operating margins only grew 30 bps Y/Y to 14.8%. We should see stronger margins in F2H 24. MKC kept its guidance unchanged, but will likely raise it next quarter, in our opinion. We believe MKC is on track to return to double-digit EPS growth next fiscal year (FY 25), as this fiscal year (FY 24) is expected to be a heavy investment year.