Citi cuts J.M. Smucker price target to $128, maintains Buy

Published 19/05/2025, 10:48
Citi cuts J.M. Smucker price target to $128, maintains Buy

On Monday, Citi analysts adjusted the price target for J.M. Smucker (NYSE:SJM) stock, lowering it slightly to $128 from $129 while sustaining a Buy rating on the shares. The revision comes ahead of the company’s scheduled earnings report for the fourth fiscal quarter of 2025, which is set for June 10, 2025. According to InvestingPro data, the stock currently trades at $113.49, with analyst targets ranging from $104 to $135, suggesting potential upside from current levels. The company maintains an impressive 55-year streak of consistent dividend payments, with a current yield of 3.81%.

Analysts at Citi forecast fourth-quarter sales and earnings per share (EPS) for J.M. Smucker that surpass the consensus estimates from Visible Alpha. This optimistic outlook is primarily attributed to expected strong performance in the Coffee segment. While the company reported negative earnings in the last twelve months, InvestingPro analysis indicates analysts expect profitability to return this fiscal year, with EPS forecasts of $10.05. For fiscal year 2026, Citi’s projection for EPS is marginally below the consensus due to potential cost pressures from rising coffee prices and tariffs, as well as generally negative remarks from staple companies during the first-quarter earnings season of the calendar year.

Despite the minor adjustment in the price target, Citi’s analysts maintain a positive view on J.M. Smucker’s stock. They believe the company has a more apparent route to EPS growth in the upcoming year compared to its similarly valued peers. The analysts highlighted the upside potential for J.M. Smucker shares, considering the anticipated developments in the forthcoming periods.

Investors and market watchers are now anticipating the company’s fourth-quarter financial results, which will provide further insights into J.M. Smucker’s performance and its trajectory in the face of industry challenges such as input cost inflation and global trade tariffs.

In other recent news, J.M. Smucker Company announced the promotion of John Brase to President and Chief Operating Officer, recognizing his contributions to the company’s growth and operational improvements. UBS initiated coverage of J.M. Smucker with a Buy rating, setting a price target of $134, and highlighted the company’s stable market share and potential for low single-digit organic revenue growth over the next 12 to 18 months. Despite coffee inflation affecting earnings per share growth, UBS believes this is already accounted for in the stock’s valuation. Morgan Stanley (NYSE:MS) also began coverage with an Overweight rating and a $123 price target, citing J.M. Smucker’s strong brand portfolio and resilience to inflationary pressures, particularly in its coffee segment. The company declared a dividend of $1.08 per share, payable on June 2, 2025, with a virtual Annual Meeting of Shareholders scheduled for August 13, 2025. DA Davidson noted an acceleration in sales growth for J.M. Smucker over the last four weeks compared to longer periods, maintaining a Neutral rating on the stock. These developments reflect a varied outlook from analysts and signal ongoing interest in J.M. Smucker’s strategic positioning and market performance.

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