J.M. Smucker downgraded to Hold at TD Cowen on Hostess and pet biz concerns

As previously reported, TD Cowen downgraded J.M. Smucker (SJM) to Hold from Buy with a $121 price target It is “increasingly clear” that the firm and management underestimated the degree to which the acquired Hostess business had been artificially boosted by government subsidies for low-income consumers and pandemic snacking pattern, argues the analyst, who believes that the company will need to reinvest to stabilize its declines. Also, while Smucker’s core business is performing well, the Pet business is “now on shakier ground,” the analyst added.