BofA update shows where active managers are putting money
Investing.com - J.M. Smucker (NYSE:SJM) received a reiterated Hold rating and $110.00 price target from Stifel on Thursday, following the company’s mixed first-quarter results. Trading at $105.67, InvestingPro analysis suggests the stock is fairly valued, with analyst targets ranging from $105 to $130.
The food manufacturer reported earnings per share of $1.90, which beat Stifel’s estimate by $0.02 but fell short of the consensus expectation by $0.03. Stifel noted that the company’s coffee business showed resilient volumes with favorable elasticities compared to historical averages. The company maintains a strong dividend tradition, having paid dividends for 55 consecutive years with a current yield of 4.16%.
Volume trends in the quarter lagged behind measured channel consumption as J.M. Smucker compared against distribution gains from the previous year in its Frozen Handhelds and Spreads segments.
The company raised its sales guidance for the year, incorporating favorable elasticity trends from previous coffee pricing actions and additional pricing measures. However, the outlook includes expectations for worsening elasticity trends as new pricing takes effect.
J.M. Smucker maintained its earnings per share outlook, with a $0.20 benefit from favorable coffee trends being offset by an additional $0.25 drag due to tariffs. Stifel expressed a positive bias toward future earnings growth potential in fiscal year 2027 despite maintaining its Hold rating.
In other recent news, J.M. Smucker reported its first-quarter fiscal 2026 earnings, with adjusted earnings per share (EPS) of $1.90 and revenue of $2.11 billion, both meeting analysts’ expectations. Despite aligning with projections, the results did not alleviate investor concerns, resulting in a stock decline. BofA Securities responded by lowering its price target for J.M. Smucker to $118, maintaining a Neutral rating, due to disappointing performance in the company’s coffee segment. Meanwhile, CFRA upgraded the stock from Hold to Buy, raising its price target to $123, citing potential growth in fiscal year 2027. The firm highlighted mixed results in the first quarter, with strong performance in coffee, cat food, and handheld sandwiches, contrasted by weaknesses in other categories, notably the Hostess brand. These developments reflect differing analyst perspectives on J.M. Smucker’s future performance.
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