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On Wednesday, Jefferies analyst Scott Marks increased the price target for J.M. Smucker (NYSE:SJM) shares to $118 from the previous $111 while maintaining the company’s Hold rating. Currently trading at $110.99, InvestingPro analysis suggests the stock is slightly undervalued. The adjustment comes amid observations of the company’s retail sales data, which indicate a performance that surpasses its competitors, with revenue growing 7.07% over the last twelve months.
Marks noted that J.M. Smucker shows limited price sensitivity in its coffee segment and is experiencing substantial distribution gains for its Uncrustables brand. The $11.79 billion market cap company has maintained its dividend payments for an impressive 55 consecutive years, currently offering a 3.79% yield. Additionally, growth in the Jif peanut butter and Meow Mix cat food products is compensating for weaker areas such as Hostess baked goods and Milk-Bone dog treats.
The analyst pointed out that a significant portion of J.M. Smucker’s portfolio seems to be less affected by the challenges that typically impact the center store categories in supermarkets. Despite this, there are ongoing concerns about the future performance of the Hostess brand, potential tariff-related costs affecting the coffee segment, and the management of overhead costs in the pet food division following divestitures.
Marks reiterated the Hold rating, suggesting a cautious stance towards the stock. The commentary reflects a recognition of J.M. Smucker’s strengths in specific areas, while also acknowledging the uncertainties and risks that could influence the company’s financial trajectory.
Investors and market watchers may find the updated price target and the reaffirmed Hold rating as indicative of Jefferies’ current view on J.M. Smucker’s stock, balancing the company’s recent gains against potential headwinds. For deeper insights into SJM’s valuation and financial health, InvestingPro subscribers can access comprehensive analysis, including 6 additional ProTips and detailed financial metrics in the Pro Research Report.
In other recent news, J.M. Smucker has announced plans to close its Indianapolis facility, part of its Hostess® brand operations, by early 2026. This decision is part of a broader strategy to streamline its manufacturing network and reduce costs, aligning with the company’s Sweet Baked Snacks strategy. J.M. Smucker will provide further details about the closure in its fiscal year 2025 fourth-quarter results. In the meantime, Bernstein analysts have maintained a Market Perform rating on J.M. Smucker, with a price target of $104, expressing concerns about the company’s coffee segment due to rising input costs. On the other hand, Citi analysts have slightly lowered their price target to $128 but maintain a Buy rating, forecasting fourth-quarter sales and earnings per share to surpass consensus estimates, despite potential cost pressures in fiscal year 2026. Additionally, J.M. Smucker has promoted John Brase to President and Chief Operating Officer, recognizing his contributions to the company’s growth and strategic execution since joining in 2020. Brase will continue to oversee key segments, including U.S. retail coffee and pet foods, while engaging in external activities to broaden the company’s influence. These developments reflect J.M. Smucker’s ongoing efforts to optimize operations and leadership as it navigates industry challenges.
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