SJM - JM Smucker upgraded to Buy as Argus eyes profit improvements

2023-03-27 08:25:55 ET

JM Smucker Company ( NYSE: SJM ) was raised to a Buy rating from Hold at Argus on Monday as pandemic gains are solidified.

Equity analyst Taylor Conrad advised that the company’s market share on at-home consumption of food and beverages “continues to exceed pre-pandemic levels” even after the waning of COVID-driven demand spikes. Additionally, Conrad sees management’s efforts to reduce supply chain issues and improve profitability both via price hikes and by divesting certain businesses as prudent at present.

“We believe that SJM merits a higher valuation based on the company's current growth prospects and efforts to divest less profitable businesses, and that a BUY rating is now appropriate,” he concluded.

Conrad assigned the stock a $170 price target alongside the upgrade. He maintained an Underweight rating on the overall consumer staples sector however.

Shares of JM Smucker ( SJM ) rose modestly in premarket trading on Monday.

Read more on Smucker’s latest earnings results .

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