UPDATE: Goldman Sachs Upgrades J.M. Smucker to Buy, Raises PT

In a report published Monday, the Goldman Sachs Group upgraded its rating on the J.M. Smucker Company

from Neutral to Buy, and raised its price target from $85.00 to $90.00. Goldman Sachs noted, “We upgrade SJM to Buy from Neutral. Buy SJM to benefit from an advantaged cost profile, underappreciated end-user demand growth and best-in-class cash returns to shareholders. SJM's input cost outlook remains favorable given high coffee and peanut exposure – an attribute that is becoming increasingly scarce. And its heavy exposure to the coffee category's secular premiumization trend offers a sustained sales growth advantage. Price growth will ebb and flow with inputs, but SJM is equipped to deliver above average volume/mix sales growth. The combined cost and demand dynamics fuel our above consensus estimates this year and beyond.” The J.M. Smucker Company closed on Friday at $76.80.