NEW YORK (TheStreet) -- Credit Suisse lowered its target price on J.M. Smucker (SJM) to $97 and also lowered its estimates. The firm noted that the company is facing increased competition and set a "neutral" rating.
The stock was rising 2.93% to $94.50 shortly after the market opened on Tuesday.
Separately, TheStreet Ratings team rates SMUCKER (JM) CO as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SMUCKER (JM) CO (SJM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, reasonable valuation levels, expanding profit margins, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SMUCKER (JM) CO has improved earnings per share by 7.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SMUCKER (JM) CO increased its bottom line by earning $5.00 versus $4.06 in the prior year. This year, the market expects an improvement in earnings ($5.76 versus $5.00).
- 38.03% is the gross profit margin for SMUCKER (JM) CO which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.83% trails the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the Food Products industry average, but is less than that of the S&P 500. The net income increased by 3.0% when compared to the same quarter one year prior, going from $148.85 million to $153.40 million.
- The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that SJM's debt-to-equity ratio is low, the quick ratio, which is currently 0.69, displays a potential problem in covering short-term cash needs.
- You can view the full analysis from the report here: SJM Ratings Report