Buy J.M. Smucker (SJM) on Weakness, Says Deutsche Bank
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Price: $115.80 -2.32%
Rating Summary:
8 Buy, 15 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
8 Buy, 15 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Shares of J.M. Smucker Co. (NYSE: SJM) traded lower on Thursday following its Q4 earning release. Analyst Eric Katzman of Deutsche Bank thinks investors should buy shares on weakness.
"The shares tend to be volatile around results as investors fixated on coffee either feel a caffeine high or overly depressed! F4Q13 offered much of the same with K-cup growth concerns along with a F2H14 EPS weighted year. But we see solid execution, high quality 10%+ A&P support arguing for a higher valuation," said Katzman.
"Although the stock has sold off post F4Q13, we retain our BUY opinion. Our long held positive view is based on leading brands, share gains, productivity, and a solid balance sheet. Even with what we see as conservative guidance, valuation (a 12% discount to the group avg C2014 cash P/E) seems attractive," added the analyst.
Deutsche Bank has a Buy rating on J.M. Smucker with a price target of $109.00.
For an analyst ratings summary and ratings history on J.M. Smucker (NYSE: SJM) click here. For more ratings news on J.M. Smucker click here.
Shares of J.M. Smucker closed at $102.37 yesterday.
"The shares tend to be volatile around results as investors fixated on coffee either feel a caffeine high or overly depressed! F4Q13 offered much of the same with K-cup growth concerns along with a F2H14 EPS weighted year. But we see solid execution, high quality 10%+ A&P support arguing for a higher valuation," said Katzman.
"Although the stock has sold off post F4Q13, we retain our BUY opinion. Our long held positive view is based on leading brands, share gains, productivity, and a solid balance sheet. Even with what we see as conservative guidance, valuation (a 12% discount to the group avg C2014 cash P/E) seems attractive," added the analyst.
Deutsche Bank has a Buy rating on J.M. Smucker with a price target of $109.00.
For an analyst ratings summary and ratings history on J.M. Smucker (NYSE: SJM) click here. For more ratings news on J.M. Smucker click here.
Shares of J.M. Smucker closed at $102.37 yesterday.
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