J.M. Smucker Receives a Hold from Credit Suisse

By Austin Angelo

Credit Suisse analyst Robert Moskow reiterated a Hold rating on J.M. Smucker (NYSE: SJM) yesterday and set a price target of $134. The company’s shares opened today at $124.47.

Moskow commented:

“We expect retailers to increase their inventory on Smucker’s coffee brands and Nature’s Recipe in the back half of the fiscal year in response to these initiatives, but we do not think they will be enough to spur the 2-3% organic growth that management guidance implies. In addition, we fear that elasticity of demand in coffee and continued weakness in Smucker’s core pet brands will lead to weaker-than-expected growth in fiscal 2018. We are raising our fiscal 2017 EPS to $7.67 (from $7.64) because we think the company has sufficient cost savings for the year, but lowering our fiscal 2018 EPS estimate to $8.05 (compared to consensus of $8.17) and lowering our target price to $134/share (from $138).”

According to TipRanks.com, Moskow is a 1-star analyst with an average return of -1.1% and a 36.9% success rate. Moskow covers the Consumer Goods sector, focusing on stocks such as Archer Daniels Midland, Mondelez International, and Amplify Snack Brands.

J.M. Smucker has an analyst consensus of Hold.

J.M. Smucker’s market cap is currently $14.54B and has a P/E ratio of 20.53. The company has a book value ratio of 2.0484.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is neutral on the stock. Most recently, in June 2016, David J. West, the President of SJM sold 865 shares for a total of $125,987.

The J. M. Smucker Co. engages in the production and market of fruit spreads, peanut butter and other food products. The company operates through the following segments: U. S. Retail Coffee, U. S. Retail Consumer Foods and International, Foodservice & Natural Foods. The U. S. Retail Coffee segment represents the domestic sales of Folgers, Dunkin’ Donuts, Millstone, Cafe Bustelo, and Cafe Pilon coffee to retail customers. The U. S. Retail Consumer Foods segment includes domestic sales of Smucker’s, Crisco, Jif, Pillsbury, Eagle Brand, Hungry Jack, and Martha White products. The International, Foodservice & Natural Foods segment is comprised of products distributed domestically and in foreign countries through retail channels, foodservice distributors and operators, for example restaurants, schools and universities, health care operators and health and natural foods stores and distributors. The company was founded by Jerome Monroe Smucker in 1897 and is headquartered in Orrville, OH.