Susquehanna analyst Pablo Zuanic reiterated a Buy rating on JM Smucker (NYSE: SJM) yesterday and set a price target of $121. The company’s shares closed on Friday at $102.95.
Zuanic commented:
“We rate SJM Positive because we do not think the valuation (20% discount to S5CONS on PE inc amort, and on tax-adjusted EBITDA) reflects the attractiveness of the pet food and coffee categories, and the progress the company is making in shifting the portfolio to more premium and value-added products (higher margin), as it seeks to grow in the “right” segments/brands. We think in particular the pet transformation has been overlooked by investors. On the other hand, coffee remains highly exposed to mass R&G (~50%), where premiums to PL are now negligible. Greater color re the shift to the premiumization of the R&G coffee portfolio at the investor day would be useful.”
According to TipRanks.com, Zuanic is a 4-star analyst with an average return of 5.1% and a 44.7% 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 Hold, with a price target consensus of $111.50.
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The company has a one-year high of $133.38 and a one-year low of $96.13. Currently, JM Smucker has an average volume of 1.13M.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock.
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The J. M. Smucker Co. engages in the manufacture and marketing of branded food and beverage products. It operates through the following segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Away From Home.
