UPDATE: Credit Suisse Reiterates Neutral Rating, Raises PT on J.M. Smucker Co. Following Big Heart Acquisition News

In a report published Wednesday, Credit Suisse analyst Robert Moskow reiterated a Neutral rating on

, and raised the price target from $105.00 to $111.00. In the report, Credit Suisse noted, "Smucker returned to form with the announcement of its first transformative acquisition since Folgers in 2008. Smucker will acquire Big Heart Brands (MilkBone, Meow Mix, Kibbles & Bits) for $5.8 billion representing 13x EBITDA or 9x including $200 million in synergies by FY 18. While we harbor some concerns that the management team is overpaying for growth to prop up a struggling business, we think the positives of this transaction outweigh the negatives. Big Heart fits Smucker's strategy to acquire leading brands, it has a growth rate that is accretive to Smucker's, and it has strong EBITDA margins. It also comes with a highly talented leader, Dave West, who we think could run the Smucker business one day. Perhaps $5.8B is what it takes to get Smucker back on track." J.M. Smucker Co. closed on Tuesday at $105.88.