J.M. Smucker stock maintains Neutral rating at DA Davidson amid guidance

Published 11/06/2025, 15:20
J.M. Smucker stock maintains Neutral rating at DA Davidson amid guidance

DA Davidson maintained its Neutral rating and $126.00 price target on J.M. Smucker (NYSE: SJM) Wednesday as the food company, currently trading at $94.98 and down nearly 16% in the past week, faces significant headwinds. According to InvestingPro data, the stock’s RSI indicates oversold territory.

The food manufacturer’s initial fiscal year 2026 earnings per share guidance came in 13% below consensus at the midpoint, highlighting trade and policy uncertainty that could continue to pressure estimates and multiples across the food sector.

Despite J.M. Smucker’s consumption trends performing "relatively well" according to DA Davidson, the research firm noted this provides "little solace" given what it described as "at best a poorly timed Hostess Brands (NASDAQ:TWNK) acquisition."

The analyst report also pointed to macroeconomic forces weighing on the company’s bottom line as a key concern for investors.

DA Davidson indicated its price target and estimates for J.M. Smucker are currently under review, with a "bias to the downside" suggesting potential future adjustments could trend lower. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription.

In other recent news, J.M. Smucker’s earnings and revenue updates have drawn significant attention. The company reported stronger-than-expected fourth-quarter results, driven by solid performance in its legacy business, particularly the Uncrustables brand and its coffee portfolio. However, the Sweet Baked Snacks segment, which includes the Hostess brand, presented ongoing challenges. Stifel analysts responded by lowering their stock price target to $106.00 from $120.00, citing concerns over future profit expectations in both the Coffee and Sweet Baked Goods segments. Similarly, Morgan Stanley (NYSE:MS) reduced its price target to $115.00 from $124.00, following weaker-than-expected organic sales growth and a significant reduction in EPS guidance for fiscal year 2026. Despite these challenges, Morgan Stanley highlighted J.M. Smucker’s underlying organic sales growth as a positive factor, estimating it at approximately 2%. Bernstein also expressed concerns about the Hostess brand, lowering their price target to $94.00 from $104.00, and questioning the company’s management strategies to address ongoing issues. These recent developments have impacted investor sentiment, with analysts adjusting their projections accordingly.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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