What Analysts Recommend for SJM Stock Now

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.

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.