'Add Spice And Let Simmer,' Deutsche Says Of McCormick

According to Contreras, McCormick's core U.S. consumer business "appears to be strengthening" due to growth in its spices and seasonings businesses. Specifically, the broader spice and seasoning category posted an 8 percent growth, while McCormick's brands grew 7 percent.

The company also showed signs of improvement in the international market, specifically in China where sales rose 8 percent through the first half of the year in the consumer and industrial segment.

Related Link: McCormick & Company Q2 Adjusted Earnings Top By A Penny

McCormick also discontinued selling low margin products in India which impacted total sales, while sales in Russia and Poland were boosted by expanded distribution and marketing.

McCormick also reaffirmed its fiscal 2016 guidance of 4 to 6 percent sales growth, EBIT growth of 6 to 8 percent in the US and earnings per share in the range of $3.68 to $3.75.

McCormick suggested that the company's management team is in a position to deliver on the higher end of its fiscal 2016 targets and create further upside for shareholders.

"With McCormick delivering improved results in U.S. Consumer, raising CCI savings target, and pursuing logical acquisitions, we maintain a favorable view on the stock," the analyst wrote. "We see strong relative market share (RMS), a focused portfolio, and strong B/S as helping justify premium valuation (28x C2016 P/E)."

Shares remain Buy rated with an unchanged $113 price target.