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Susquehanna Thinks JM Smucker’s Stock is Going to Recover


In a report released today, Pablo Zuanic from Susquehanna reiterated a Buy rating on JM Smucker (NYSE: SJM), with a price target of $122. The company’s shares opened today at $102.13, close to its 52-week low of $96.13.

Zuanic said:

“We continue to think SJM is moving in the right direction, transforming the portfolio for growth (re products, segments, formats, and channels) and for premiumization (margin accretive). We see that in pet food with the Nutrish deal, the push with premium brands like Nature’s Recipe, and value-added innovation across the portfolio (with a big push in treats, including value-added innovation around Milkbone). In coffee, the company continues to diversify away from Folgers mainstream red cans of R&G to premium bag R&G coffee and K-cups. the snacks business is growing at a 20% clip, and is close to a fifth of that division. Over time we think all these changes will help the stock re-rate, and also reduce earnings volatility (especially in coffee).”

According to TipRanks.com, Zuanic is a 4-star analyst with an average return of 4.8% and a 43.4% 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.

The word on The Street in general, suggests a Hold analyst consensus rating for JM Smucker with a $110.43 average price target.

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Based on JM Smucker’s latest earnings release for the quarter ending July 31, the company reported a quarterly net profit of $132 million. In comparison, last year the company had a net profit of $126 million.

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.