Goldman Tweaks Estimates and Raises Price Target on J.M. Smucker (SJM) Prior to Q4 Earnings

Goldman Sachs is maintaining its Neutral rating on shares of J.M. Smucker (NYSE: SJM), but is raising its price target by $3 to $81 as the company is expected to report its Q4 earnings on Thursday June 9, 2011.

The firm has adjusted its estimates to reflect the Rowland Coffee acquisition and a fresh analysis of costs. Goldmans new Q4 2011 EPS estimate is now $0.99 while its full-year 2012 was raised to $5.07 from $4.98. It also upped its full-year 2013 estimate by a few cents to $5.59.

Goldman's 2012 revenue growth forecast of 15 percent is well ahead of the Street's prediction of 6 percent. The firm agrees with the Street's expectation of EBIT growth of only 2.5 percent.

To date the company has raised its coffee prices by 37 percent, the firm sees another price increase in the near-term. The firm reports that inventory levels may fall and negatively impact SJM’s volume.

For more ratings news on J.M. Smucker click here and for the rating history of J.M. Smucker click here.

Shares of J.M. Smucker closed at $78.18 yesterday.

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