SJM - J.M. Smucker viewed cautiously by Morgan Stanley ahead of earnings

Morgan Stanley sticks with an Underweight rating on J.M. Smucker (SJM) in front of the company's upcoming earnings report. Analyst Pamela Kaufman and team are cautious on J.M. Smucker in the mid-term due in part to rising input cost inflation, inconsistent execution track record in marketing/innovation and mixed share performance across key categories like ground coffee, pet treats and food. The firm see risk to FY22 EPS, with its estimate standing about 2% below the consensus mark. The price target of $126 is 10.9X the 2022 EV/EBITDA estimate. The pessimism from Morgan Stanley runs counter to the positive stance on SJM from Deutsche Bank ahead of the earnings report. J.M. Smucker has topped revenue and EPS estimates in four straight quarters.

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J.M. Smucker viewed cautiously by Morgan Stanley ahead of earnings