Susquehanna Issues a Buy Rating on JM Smucker


Susquehanna analyst Pablo Zuanic assigned a Buy rating to JM Smucker (NYSE: SJM) today and set a price target of $159. The company’s shares opened today at $108.29.

Zuanic said:

“We are tweaking our 4Q18 (Apr qtr) estimates ahead of the FY18 print on 6/7, and we also introduce estimates including the Ainsworth Pet Nutrition deal (we factor it from 1Q19), which closed on 5/14 (this is supposed to add 25c to EPS before amortization). We rate SJM Positive. Our price target for Dec’18 is $159 (up from $158), as we take a 17x PE (given what we think is the better structural shape of the company’s pet food and coffee units), which is equivalent to a 8% peer discount on our CY19 tax-adjusted EV/EBITDA estimates.”

According to TipRanks.com, Zuanic is a 3-star analyst with an average return of 3.5% and a 52.5% 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.

JM Smucker has an analyst consensus of Moderate Buy, with a price target consensus of $134.75.

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Based on JM Smucker’s latest earnings release for the quarter ending January 31, the company reported a quarterly net profit of $827 million. In comparison, last year the company had a net profit of $110 million.

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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; U.S. Retail Pet Foods; International and Foodservice. The U. S. Retail Coffee segment includes the domestic sales of Folgers, Dunkin Donuts, and Café Bustelo branded coffee. The U.S. Retail Consumer Foods segment sells Jif, Smucker’s, Crisco, and Pillsbury branded products. The U.S. Retail Pet Foods comprises of Meow Mix, Milk-Bone, Natural Balance, Kibbles’n Bits, 9Lives, Pup-Peroni, and Nature’s Recipe branded products. The International and Foodservice segment covers the products distributed domestically and in foreign countries. The company was founded by Jerome Monroe Smucker in 1897 and is headquartered in Orrville, OH.

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