BofA Securities analyst Peter Galbo maintains $JM Smucker (SJM.US)$ with a hold rating, and maintains the target price at $124.
According to TipRanks data, the analyst has a success rate of 45.0% and a total average return of 0.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $JM Smucker (SJM.US)$'s main analysts recently are as follows:
The firm adjusted its forecast for FY25 adjusted EPS to $9.90 following the Q2 results surpassing expectations. It is noted that the stock's valuation multiple is currently discounted compared to the average of the packaged food peer group, yet aligns with counterparts in the center store segment. This alignment is considered appropriate as Smucker moves forward with its FY25 objectives, albeit with some execution risks associated with Hostess.
Amid concerns about potential earnings per share adjustments due to weak inflation figures in Hostess and Coffee segments, the relief came from the company's second quarter sales and profit outperformance alongside an uplift in its full-year earnings projection. It appears that despite remaining challenges, there has been noteworthy progress.
The company delivered a strong performance in its second quarter, with organic volumes impressive against the food sector backdrop. Margin improvements in Coffee, fueled by pricing strategies, were noted, though as coffee costs increase, expectations are for elasticity to rise, potentially pressuring margins. Moreover, a robust margin in the Pet segment leads to questions about the extent of embedded stranded overheads.
Note:
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