(AP) — The J.M. Smucker Co.'s shares fell Thursday after a Wells Fargo Securities analyst downgraded his rating on the company, citing concerns about its coffee business.
The company, based in Orrville, Ohio, makes Folgers coffee, Jif peanut butter and Crisco shortening.
Analyst John Baumgartner said in a research note that while Smucker's retail coffee business has gotten a recent boost from sales of Dunkin' Donuts bagged coffee and Keurig single-serve pods, but competition is intensifying from other food and beverage makers, like Kraft.
He also noted that anticipated drops in the prices for some ingredients used in its foods are already factored into Wall Street's estimates and those prices could head up again.
The analyst downgraded his rating of Smucker's stock to "Underperform" from "Market Perform."
A representative for Smucker did not immediately respond to a request for comment.
Shares of J.M. Smucker fell $2.46, or 2.4 percent, to close at $102.29. Its stock has gained 19 percent this year.
