CFRA upgrades J.M. Smucker stock to Buy on potential FY27 growth

Published 27/08/2025, 21:10
CFRA upgrades J.M. Smucker stock to Buy on potential FY27 growth

Investing.com - CFRA upgraded J.M. Smucker (NYSE:SJM) from Hold to Buy on Wednesday, raising its price target to $123.00 from $109.00, citing potential for above-algorithm performance in fiscal year 2027. According to InvestingPro data, nine analysts have recently revised their earnings estimates upward, with price targets ranging from $94 to $130.

The research firm noted mixed fiscal first-quarter 2026 results for the food company, with strength in coffee, cat food, and handheld sandwiches offset by weakness in other categories, particularly the underperforming Hostess brand.

CFRA expects momentum to build by the end of fiscal year 2026, supported by stronger coffee margins due to favorable elasticities, stabilization in Hostess following planned SKU rationalization and plant closure, and a return to growth in Pet Foods driven by favorable comparisons and strength in the Meow Mix brand.

The firm adjusted its earnings per share estimates downward, projecting $8.95 for fiscal year 2026 (from $9.10) and $10.24 for fiscal year 2027 (from $10.39), but believes the potential for fiscal year 2027 to exceed algorithm expectations is not reflected in current consensus estimates.

CFRA also highlighted the possibility of tariff exemptions for coffee imports, noting that coffee cannot be grown at scale in the United States, while identifying risks including adverse changes in green coffee commodity prices and trade policy.

In other recent news, The J. M. Smucker Company announced its first-quarter fiscal 2026 earnings. The company reported an adjusted earnings per share (EPS) of $1.90, which met analysts’ expectations. Revenue for the quarter also aligned with forecasts, reaching 2.11 billion dollars. These results come amidst a backdrop of investor concerns over certain financial metrics and market conditions. Despite the earnings and revenue aligning with projections, some analysts have expressed caution regarding the company’s future performance. This sentiment is reflected in the stock’s premarket decline, as investors weigh the company’s financial health. The results underscore the importance of closely monitoring market conditions and company metrics. These developments provide investors with critical insights into the company’s current financial standing.

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