We Don't See Enough Brand Strength for Smucker to Reach High-Single-Digit Adjusted EPS Growth Target

Smucker has the leading brand in some categories, especially its Uncrustables brand, but we don’t think it enjoys enough pricing power or entrenched retailer relationships to create an economic moat. Its long-term strategy is to turn low-single-digit sales growth into mid-single-digit adjusted operating income growth, leading to high-single-digit adjusted EPS growth—but we expect mid-single-digit growth as likely.