Goldman Sachs Maintains Sell Rating On J.M. Smucker: Analyst Highlights Challenges Despite EPS Beat
Portfolio Pulse from Nabaparna Bhattacharya
Goldman Sachs analyst Jason English maintained a Sell rating on J.M. Smucker Company (NYSE:SJM) with a price target of $131. Despite an EPS beat in Q2 FY24, with adjusted EPS of $2.59 over the $2.47 consensus, sales declined by 12% to $1.94 billion, missing the consensus of $1.95 billion. The company updated its full-year outlook post-Hostess acquisition, adjusting its organic growth outlook and raising its underlying EPS forecast. A $39 million supplier agreement termination charge impacted coffee profits. The company now expects FY24 EPS in the range of $9.25-$9.65, with the second half of FY24 EPS expected to be below consensus. SJM shares rose 3.27% to $116.11.
December 05, 2023 | 7:53 pm
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Goldman Sachs maintains a Sell rating on J.M. Smucker with a price target of $131, despite the company beating EPS estimates in Q2 FY24. Sales declined and the full-year EPS outlook was adjusted, with a $39 million charge in the coffee segment impacting profits.
The Sell rating from Goldman Sachs, despite the EPS beat, indicates skepticism about the company's future performance. The sales decline and the significant charge in the coffee segment suggest potential challenges ahead. The price target of $131 also implies a downside from the current trading price, which could lead to a negative short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100