TD Cowen analyst Robert Moskow has maintained their neutral stance on SJM stock, giving a Hold rating yesterday.
Robert Moskow has given his Hold rating due to a combination of factors affecting JM Smucker’s financial outlook. The company reported mixed results in its recent quarter, with earnings per share exceeding expectations but sales growth falling short. This discrepancy led to a modest increase in the full-year earnings forecast while sales projections were adjusted downward. Despite some positive developments, such as cost reductions contributing to an EBIT beat, there are ongoing concerns about the company’s ability to maintain growth.
Further complicating the outlook, JM Smucker faces challenges in its coffee segment, where growth fell short of estimates due to weaker-than-expected demand elasticity. Additionally, the Sweet Baked Snacks division experienced a decline, prompting management changes and a significant write-down on Hostess. These factors, combined with uncertainties in the broader market and competitive pressures, contribute to a cautious stance, justifying the Hold rating as the company navigates these headwinds.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $123.00 price target.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SJM in relation to earlier this year.