UPDATE: Citi Lowering Price Target On The J.M. Smucker Company

Citi Investment Research is out with a research report on The J.M. Smucker Company

and is lowering its price target to $78 from $82, but is keeping its Hold rating on shares. In a note to clients, Citi Investment Research writes, "Smucker reported a strong 1Q with EPS of $1.12, a +3c beat over consensus ($1.09). Coffee volumes took center stage in the Q, as they tumbled -8% as pricing rose +30%, finally reaching a point of pain for some consumers. SJM has announced a -6% price decrease on coffee, which appears to us to be a somewhat tactical move to moderate prices in order to get vol. back on track. As a result, we see less potential for EPS upside in F12 than previously thought, and, in our opinion, introduces the possibility of downside. Further pointing to this idea is that even with the earnings beat, management held F12 EPS guidance constant." Shares of SJM lost $5.54 yesterday to close at $70.02, a loss of 7.33%.