Packaged foods maker The J.M. Smucker Company ( SJM ) on Thursday saw its shares added to Goldman Sachs' prestigious "Conviction Buy" List.
The firm upgraded SJM from "Neutral" to "Buy" and lifted its price target from $81 to $86. That new target suggests a 19% upside to the stock's Wednesday closing price of $72.40.
Goldman noted SJM is an above-average food company that's being undervalued by the market. It expects solid earnings growth, a rising valuation, and good allocation of capital in the near term.
J.M. Smucker shares were unchanged in premarket trading Thursday.
The Bottom Line
Shares of J.M. Smucker Company ( SJM ) have a 2.65% dividend yield, based on last night's closing stock price of $72.40. The stock has technical support in the $66-$68 price area. If the shares can firm up, we see overhead resistance around the $75-$76 price levels.
The J.M. Smucker Company ( SJM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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