Analysts at Deutsche Bank provided a report on McCormick & Co (NYSE:MKC) ahead of its Q3 earnings report on Sept 30.

According to the analysts, their biggest concern facing the company will likely be further downside to gross margins as it grapples with supply constraints and higher inflation across several commodities, packaging materials, labor, and transportation costs.

The brokerage said its full 2021-year revenue estimates reflect relatively strong Q3 consumption, continued retailer replenishment, a slight deceleration in foodservice recovery, and acquisition benefits from Cholula and FONA, with constant currency growth at +6.6% year-over-year and overall sales up 13.0% year-over-year.

The brokerage expects full 2021-year EPS of $3.03 (vs. prior $3.04), which is just slightly above the midpoint of the company's $3.00-$3.05 guidance.

The analysts lowered their price target on the company’s shares to $91 from $95, maintaining their hold rating.