J.M. Smucker's shares undervalued - Barron's

NEW YORK, May 31 (Reuters) - Shares in J.M. Smucker Co (SJM.N: Quote, Profile, Research) may be undervalued given its predictable cash flow and brands such as Jif, Hungry Jack and Crisco, Barron's reported in its June 1 edition.

Sales are recovering after a decline related to the salmonella-tainted peanut product situation, Barron's said.

Also, its acquisition of coffee company Folgers will help increase its operating leverage and it is expecting $20 million in cost savings from acquisitions, a $10 million improvement in the peanut-butter business and a $35 million cut in acquisition costs, Alexander Roepers, president of Atlantic Investment Management, told Barron's.

The company, which trades at 12 times expectations for 2010 earnings, deserves a "pretty high" multiple, Roepers told Barron's.