JM Smucker (SJM – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Peter Galbo from Bank of America Securities remains neutral on the stock and has a $125.00 price target.
Peter T. Galbo has given his Hold rating due to a combination of factors that include recent transactions and market trends. JM Smucker’s acquisition of Hostess Brands (TWNK) and the formation of a new Sweet Baked Snacks segment are key events that Galbo considered. He also noted the renaming of the Consumer Foods segment as Frozen Handheld and Spreads. The overall financial impact of these changes on the company will be clearer once SJM reports its 2Q24.
Further, Galbo’s rating reflects the dilutive effect of the TWNK acquisition on SJM’s estimates for FY24-26. The results reported by TWNK were below consensus, with annualized sales now at about $1.4 billion. This, along with the incremental interest expense related to the additional debt, the fair-value step up of TWNK inventory, and an increase in share count, has led to a lowering of the EPS for FY24, FY25 and FY26. The divestiture of Sahale Snacks also influenced the revised estimates. Lastly, Galbo maintained the 2Q organic sales estimate but adjusted the price and volume estimates in view of recent Nielsen data, and reiterated a Neutral rating while lowering the price objective to $125 from $145. This is based on a lower multiple that aligns SJM closer with its peers in the packaged food sector.
According to TipRanks, Galbo is a 4-star analyst with an average return of 5.3% and a 55.68% success rate. Galbo covers the Consumer Defensive sector, focusing on stocks such as Lamb Weston Holdings, JM Smucker, and Hormel Foods.
In another report released yesterday, Bernstein also upgraded the stock to a Hold with a $119.00 price target.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
JM Smucker (SJM) Company Description:
The J. M. Smucker Co. engages in the manufacture and marketing of 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. The U. S. Retail Coffee segment includes domestic sales of Folgers, Dunkin’ Donuts, and Café Bustelo branded coffee. The U.S. Retail Consumer Foods segment sells Smucker’s, Jif, and Crisco branded products. The U.S. Retail Pet Foods comprises Rachael Ray Nutrish, Meow Mix, Milk-Bone, Natural Balance, Kibbles ‘n Bits, 9Lives, Nature’s Recipe, and Pup-Peroni branded products. The International and Foodservice segment covers products distributed domestically and in foreign countries through retail channels and foodservice distributors and operators. The company was founded by Jerome Monroe Smucker in 1897 and is headquartered in Orrville, OH.
Read More on SJM:
- JM Smucker (NYSE:SJM), Kraft Heinz Rise on Analyst Upgrade
- J.M. Smucker upgraded to Market Perform from Underperform at Bernstein
- J.M. Smucker forms new strategic business area-Sweet Baked Snacks
- The J.M. Smucker Co. Completes the Acquisition of Hostess Brands to Advance Strategy and Expand Family of Brands in Growing Categories
- J.M. Smucker completes acquisition of Hostess Brands
