There’s a lot to be optimistic about in the Consumer Goods sector as 3 analysts just weighed in on Lam Research (NASDAQ: LRCX), JM Smucker (NYSE: SJM) and Western Digital (NASDAQ: WDC) with bullish sentiments.
Lam Research (NASDAQ: LRCX)
Merrill Lynch analyst Vivek Arya reiterated a Buy rating on Lam Research (NASDAQ: LRCX) on June 10 and set a price target of $285. The company’s shares opened today at $184.21.
According to TipRanks.com, Arya is a 5-star analyst with an average return of 19.7% and a 63.1% success rate. Arya covers the Consumer Goods sector, focusing on stocks such as Advanced Micro Devices, Integrated Device Tech, and Applied Materials.
Currently, the analyst consensus on Lam Research is Strong Buy and the average price target is $269.53, representing a 46.3% upside.
In a report released yesterday, J.P. Morgan also maintained a Buy rating on the stock.
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JM Smucker (NYSE: SJM)
Susquehanna analyst Pablo Zuanic maintained a Buy rating on JM Smucker (NYSE: SJM) on June 11 and set a price target of $123. The company’s shares opened today at $106.24.
Zuanic noted:
“Clearly the 4Q miss as reported on the morning of June 7th (diluted lower cost benefits; increased margin pressures in pet) and FY19 commentary (reinvestment, minimal underlying EPS growth) were both disappointing. We have lowered our FY19 EPS estimate by $1.27 to $8.65, and to $9.15. Our estimates do not reflect the potential divestiture of the US baking unit (potential dilution of ~25c). But we continue to think the stock’s valuation (12x our CY19 EPS estimate including amortization; FY19 FCF yield of 7.2%) represents attractive value given the mix of brands and categories, even in the context of the depressed CPG space. But catalysts may now be more spread out: share gains in coffee (driven by K-cups, and the new brand 1850 across all platforms), improving sales performance for the pet unit (innovation in treats, expansion of the APN platform), and a more focused consumer foods unit.”
According to TipRanks.com, Zuanic is a 4-star analyst with an average return of 4.6% and a 53.8% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners, Constellation Brands Inc, and Anheuser-Busch Inbev Sa.
Currently, the analyst consensus on JM Smucker is Moderate Buy and the average price target is $112.63, representing a 6.0% upside.
In a report issued on June 7, Jefferies also maintained a Buy rating on the stock with a $135 price target.
Western Digital (NASDAQ: WDC)
In a report issued on June 11, Mehdi Hosseini from Susquehanna maintained a Buy rating on Western Digital (NASDAQ: WDC), with a price target of $150. The company’s shares opened today at $82.44.
According to TipRanks.com, Hosseini is a 4-star analyst with an average return of 15.6% and a 53.8% success rate. Hosseini covers the Consumer Goods sector, focusing on stocks such as Hewlett Packard Enterprise, Universal Display, and Pure Storage Inc.
Western Digital has an analyst consensus of Strong Buy, with a price target consensus of $122.15.
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