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Investing.com - UBS lowered its price target on J.M. Smucker (NYSE:SJM) to $117.00 from $120.00 on Tuesday, while maintaining a Buy rating on the food company’s stock. The new target remains above the current trading price of $102.63 and suggests potential upside of 14%. According to InvestingPro data, analyst price targets for SJM range from $105 to $130, with the stock currently trading slightly above its Fair Value estimate.
The price target adjustment followed J.M. Smucker’s second-quarter earnings report, which met consensus expectations but slightly exceeded UBS’s estimates due to stronger sales and operating profit margins.
J.M. Smucker narrowed its fiscal year 2026 earnings outlook to the midpoint of its previous range, which contributed to a 3.7% decline in the stock on Tuesday, underperforming the Consumer Staples Select Sector SPDR Fund, which rose 1.3%. Despite recent volatility, InvestingPro reveals SJM has maintained dividend payments for 55 consecutive years and offers a 4.38% dividend yield, making it attractive for income-focused investors. The company’s EPS forecast for FY2026 stands at $9.13.
UBS attributed the negative market reaction to investor disappointment over limited upside potential in the company’s outlook, noting that the potential earnings recovery in fiscal year 2026 is lower than what investors had anticipated several months ago.
Despite the tempered outlook, UBS expressed encouragement about J.M. Smucker’s mid-single-digit organic revenue growth in what it described as a challenging category backdrop for packaged food companies. The company posted 2.54% revenue growth in the last twelve months, and InvestingPro rates its overall financial health as "FAIR" with a score of 1.81. For deeper insights, including comprehensive analysis and additional ProTips, check out the Pro Research Report available for SJM and 1,400+ other US equities.
In other recent news, J.M. Smucker’s second-quarter earnings report revealed an earnings per share (EPS) of $2.10, aligning with analysts’ expectations, while revenue reached $2.3 billion, slightly missing projections by 0.86%. DA Davidson maintained a Neutral rating for the company, highlighting that although revenue and operational metrics exceeded forecasts, non-GAAP earnings per share fell short due to higher interest expenses and tax rates. Stifel adjusted its price target for J.M. Smucker to $110 from $115, maintaining a Hold rating, citing a 24% decline in EPS from the previous year, largely due to increased coffee costs. Bernstein SocGen Group, on the other hand, raised its price target to $113 from $110, while keeping a Market Perform rating, noting the company’s organic sales growth of approximately 6%. The firm also mentioned that J.M. Smucker is performing better than its peers, excluding the impact of a co-manufacturing contract expiration related to the pet food divestment. These developments provide investors with a comprehensive view of the company’s current financial standing and market performance.
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