Credit Suisse lowers J.M. Smucker (SJM -2.2%) to an Underperform rating from Neutral.
"While the company has leading brands in two big, growing categories (coffee and pet food), the dynamic changes in consumer preferences have significantly devalued or commoditized its legacy brands and impaired its competitiveness," warns CS.
"We expect margins to head lower as these pressures necessitate more reinvestment and promotional spending," updates the analyst team.
The price target on SJM from Credit Suisse goes to $115 from $120.
Shares of J. M. Smucker are down 3.17% YTD.
Subscribe for full text news in your inbox