Barclays Maintains an 'Equalweight' on J.M. Smucker (SJM); Exploring Wide FY12 EPS Range
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Price: $124.05 +0.99%
Rating Summary:
15 Buy, 14 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
Rating Summary:
15 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
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Barclays maintains an 'Equalweight' on J.M. Smucker (NYSE: SJM), PT raised $2 to $80.
Barclays analyst says, "Even as management admitted that pricing was now more or less caught up with costs and flattish volume was perhaps reasonable to expect despite something like mid-to high-teens pricing slated for FY12, SJM appeared to give itself plenty of room when it came to setting its FY12 EPS outlook. Specifically, management introduced a wider-than-normal guidance range of $5.00-5.15 in EPS (vs. Consensus of $5.10)."
"...after assessing all of the visible headwinds and tailwinds going into FY12, we arrive at fully $5.26 in potential EPS should things go "as planned", which is more than a dime above the top end of management's guidance range. While we hope that the EPS range can over time edge towards this point, the $0.11 p/s ($5.26 minus $5.15) in additional flexibility also means that SJM could potentially sustain a -4% EBIT shortfall in Coffee and still reach the top end of its FY12 range."
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 $78.13 yesterday.
Barclays analyst says, "Even as management admitted that pricing was now more or less caught up with costs and flattish volume was perhaps reasonable to expect despite something like mid-to high-teens pricing slated for FY12, SJM appeared to give itself plenty of room when it came to setting its FY12 EPS outlook. Specifically, management introduced a wider-than-normal guidance range of $5.00-5.15 in EPS (vs. Consensus of $5.10)."
"...after assessing all of the visible headwinds and tailwinds going into FY12, we arrive at fully $5.26 in potential EPS should things go "as planned", which is more than a dime above the top end of management's guidance range. While we hope that the EPS range can over time edge towards this point, the $0.11 p/s ($5.26 minus $5.15) in additional flexibility also means that SJM could potentially sustain a -4% EBIT shortfall in Coffee and still reach the top end of its FY12 range."
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 $78.13 yesterday.
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