Jefferies Raises Price Target & Estimates on J.M. Smucker (SJM) Following Strong Market Trends and Quarterly Results
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Price: $121.39 +1.57%
Rating Summary:
15 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies is maintaining its Hold rating on shares of J.M. Smucker (NYSE: SJM), but is increasing its price target from $68 to $82.
The company posted another solid quarter betting both the Street and firm's expectations. The upside was largely contributed by an better-than-expected performance in the U.S. retail consumer and oils and baking market segments and lower corporate costs.
Folgers volumes for the quarter rose 3 percent, which is a large improvement from its loss of 3 percent in volume in Q3 2010.
The firm reports, "the challenge in FY12 will be driving volumes given the magnitude of pricing, especially in coffee, however, SJM also raised prices in oils, baking, peanut butter and fruits in May, which have yet to hit the consumer. While a strong management team and leading brands will all help, if prices were to stabilize, but not fall, retailers may start to draw inventory, particularly in coffee at the same time an increasingly stressed consumer attempts to economize."
Jefferies is raising its FY12 estimate from $5.10 to $5.18 and is releasing its Q1 2012 and FY13 at $1.12 and $5.55.
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 $77.01 yesterday.
The company posted another solid quarter betting both the Street and firm's expectations. The upside was largely contributed by an better-than-expected performance in the U.S. retail consumer and oils and baking market segments and lower corporate costs.
Folgers volumes for the quarter rose 3 percent, which is a large improvement from its loss of 3 percent in volume in Q3 2010.
The firm reports, "the challenge in FY12 will be driving volumes given the magnitude of pricing, especially in coffee, however, SJM also raised prices in oils, baking, peanut butter and fruits in May, which have yet to hit the consumer. While a strong management team and leading brands will all help, if prices were to stabilize, but not fall, retailers may start to draw inventory, particularly in coffee at the same time an increasingly stressed consumer attempts to economize."
Jefferies is raising its FY12 estimate from $5.10 to $5.18 and is releasing its Q1 2012 and FY13 at $1.12 and $5.55.
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 $77.01 yesterday.
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