In this Tuesday, Nov. 13, 2012 photo a worker pulls a line of shopping carts toward a Walmart store in North Kingstown, R.I. Wal-Mart Stores Inc. reported a 9 percent increase in net income for the third quarter, but revenue for the world's largest retailer fell below Wall Street forecasts as its low-income shoppers continue to grapple with an uncertain economy. (AP Photo/Steven Senne)
Goldman Sachs downgrades J.M. Smucker
Published: 07:55:10 PM, Mon 18 March 2013 UTC
A Goldman Sachs analyst on Monday downgraded food maker J.M. Smucker Co. on concerns about slowing sales and growing competition.
THE OPINION: Analyst Jason English cut his rating on the food company's stock to "Sell" from "Neutral," saying the company's revenue may fall on lower prices and tepid coffee sales.
J.M. Smucker, based in Orville, Ohio, sells products like Jif peanut butter and Folger's coffee.
English believes the company will have to heavily reinvest in its business soon to fend off new competitive threats, particularly in its coffee segment, where it goes up against Kraft Foods Group Inc. and an array of single-cup coffee product makers.
The analyst thinks the market's earnings expectations for the company are too high, prompting a recent run-up in its stock price. He lowered his target price on Smucker shares to $93 from $95.
THE STOCK: J.M. Smucker fell $1.06 to $96.34 in afternoon trading. The share price has risen by 30 percent since August.
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