Analysts maintained a neutral stance on the consumer and pet food manufacturer because of "reduced visibility into FY17 around competitive headwinds in the dry dog food business."
The Orrville, OH-based company still has upside potential to synergy targets and profitability related to last year's acquisition of Big Heart Pet Brands, KeyBanc analysts said in a note released this morning.
Additionally, J.M. Smucker's coffee business continues to benefit from lower coffee costs, but there are risks to EBIT growth in fiscal 2017 after the successful introduction of Dunkin' K-Cups (DNKN).
While the pet food and coffee units are the company's strong points, the other seven categories "have experienced negative dollar growth trends recently, with the majority of that exposure housed in the retail consumer foods segment," analysts added.
Shares of J.M. Smucker closed up 0.67% to $128.79 on Wednesday.
Separately, J.M. Smucker has a "buy" rating and a letter grade of A- at TheStreet Ratings because of the company's robust revenue growth, reasonable valuation levels, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.
You can view the full analysis from the report here: SJM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.