J M Smucker's Improvements In Business Model Triggers 14% Price Target Hike By Credit Suisse

Credit Suisse analyst Robert Moskow reiterated a Neutral rating on the shares of J M Smucker Co SJM and raised the price target from $145 to $165.
The analyst said Smucker’s management team provided ample evidence at its Investor Day that the company has turned a corner and become a more focused and effective operation.
With business momentum firmly headed in the right direction, the company has now formed a “Transformation Office” to establish a more proactive approach to productivity, the analyst added.
The analyst has raised the price target to reflect the improvements in the business model, which now merits a stronger valuation multiple.
After sharpening the marketing messaging, focusing the portfolio, and expanding the pipeline of innovation, the company has created a consistent and repeatable commercial model, the analyst cited.
To the analyst’s surprise, brands like Folgers, Milk-Bone, and Jif have gained traction with younger consumers with effective advertising copy through targeted mediums.
Through these efforts, the company gained share in 70% of its categories in its fiscal Q2.
An unexpectedly sharp reversal in at-home food consumption represents the biggest downside risk to the analyst’s target price, while margin recovery from higher pricing represents the biggest upside.
Also Read: J M Smucker Raises Annual Guidance On Solid Q2 Earnings Beat
Price Action: SJM shares are trading lower by 0.61% at $153.23 on the last check Thursday.

Overview Rating:

Speculative

0100

Analyst Calendar