J.M. Smucker stock price target lowered to $118 by BofA on coffee tariffs

Investing.com - BofA Securities lowered its price target on J.M. Smucker (NYSE:SJM) to $118.00 from $120.00 on Thursday, while maintaining a Neutral rating on the stock. According to InvestingPro data, analyst targets for SJM range from $105 to $130, with the stock currently trading at $105.67.

The price target reduction follows J.M. Smucker’s first-quarter fiscal 2026 earnings results, which fell below Wall Street expectations. The disappointing performance sent shares down 4.4% as investors had anticipated better results from the company’s coffee segment. Despite current challenges, the company maintains strong shareholder returns with a 4.16% dividend yield and has maintained dividend payments for 55 consecutive years, as highlighted by InvestingPro.

BofA Securities noted that increased tariff impacts on coffee have prompted J.M. Smucker to implement additional mitigation strategies, including alternative sourcing, supply chain optimization, and incremental pricing adjustments.

The firm reduced its fiscal year 2026 adjusted earnings per share estimate for J.M. Smucker to $9.05 from $9.10, reflecting both the first-quarter earnings miss and expectations for second-half weighted earnings delivery.

J.M. Smucker, known for its portfolio of food and beverage brands including its namesake fruit spreads and Folgers coffee, continues to navigate challenges in its coffee business amid broader market pressures.

In other recent news, The J.M. Smucker Company reported its first-quarter fiscal 2026 earnings, with an adjusted earnings per share (EPS) of $1.90, meeting analysts’ expectations. The company’s revenue also matched forecasts, totaling $2.11 billion. Despite these results aligning with projections, the company faced investor concerns over specific financial metrics. In a separate development, CFRA upgraded J.M. Smucker from Hold to Buy, increasing its price target to $123.00 from $109.00. This upgrade was based on potential growth prospects for the fiscal year 2027. The research firm noted mixed results for the first quarter, highlighting strengths in coffee, cat food, and handheld sandwiches. However, these were offset by weaknesses in other categories, particularly the underperforming Hostess brand. These developments reflect a period of mixed performance for J.M. Smucker.

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