Recent analyst activity
Given J.M. Smucker’s (SJM) dismal start to the year and its tepid outlook, several analysts have reduced their target prices on the stock. After the company’s lower-than-expected fiscal 1Q18 results released on August 24, 2017, Deutsche Bank cut its price target to $120 from $131, while Credit Suisse lowered its price target to $110 from $120.
Morgan Stanley reduced its target price to $108, with an “underweight” recommendation, and J.P. Morgan has downgraded J.M. Smucker stock to “neutral” from “overweight” and has lowered its target price from $135 to $116.
Ratings and target price summary
The majority of analysts have maintained a neutral outlook on SJM stock with a consensus score of 2.9, on a scale of 1.0 (“strong buy”) to 5.0 (“strong sell”). Of the 18 analysts providing ratings on SJM, 61% have recommended a “hold,” while 22% maintained a “buy,” and 17% have rated it a “sell.”
The stock closed at $111.06 on September 18, 2017, representing an upside of 7.7% to the analysts’ 12-month target price of $119.62.
By comparison, analysts are confident about Conagra (CAG) and Kraft Heinz (KHC) stock. Of the 14 analysts covering Conagra, 64% have rated the stock a “buy,” while 22% have recommended a “hold,” and 14% have recommended a “sell.”
As for Kraft Heinz, ~74% of the 19 analysts covering the stock have rated it a “buy,” while 26% have maintained a “hold.” Meanwhile, the majority of analysts have maintained a neutral outlook on the Kellogg (K), Hershey (HSY), and General Mills (GIS) stock.