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Investing.com - UBS lowered its price target on J.M. Smucker (NYSE:SJM) to $121.00 from $130.00 on Thursday, while maintaining a Buy rating on the food company’s stock. According to InvestingPro data, the company has maintained dividend payments for an impressive 55 consecutive years, demonstrating remarkable financial stability despite market fluctuations.
The price target reduction follows J.M. Smucker’s slight first-quarter earnings miss, where stronger-than-expected sales were offset by weaker gross margins. Despite the quarterly results falling short of elevated market expectations, the company maintained its fiscal year 2026 earnings outlook. Revenue growth remains solid at 6.7% over the last twelve months, with analysts expecting continued profitability this year.
J.M. Smucker shares fell 4.4% following the earnings report, underperforming the Consumer Staples Select Sector SPDR Fund, which rose 0.3% during the same period.
UBS noted that with updated tariff impacts now incorporated into the company’s guidance, investors can refocus on fundamentals, which it believes remain stronger than many center-store packaged food peers.
The investment bank sees potential for at least mid-single-digit organic growth driven by improvements across all segments, not solely from coffee pricing, and considers the risk/reward profile favorable with shares trading at approximately 11.5 times revised next-twelve-months earnings estimates.
In other recent news, J.M. Smucker reported mixed first-quarter fiscal 2026 results. The company achieved earnings per share of $1.90, surpassing Stifel’s estimate by $0.02, but falling short of the consensus expectation by $0.03. Despite the earnings miss, J.M. Smucker raised its free cash flow guidance for fiscal year 2026 by $100 million, attributing the increase to anticipated tax benefits. Analysts at Bernstein and DA Davidson raised their price targets for the company to $110 and $112, respectively, while maintaining their current ratings. BofA Securities, however, lowered its price target slightly to $118, citing disappointing performance in the coffee segment. Meanwhile, CFRA upgraded the stock to Buy, with a new price target of $123, based on potential growth in fiscal year 2027. Stifel reiterated a Hold rating, noting resilient coffee volumes with favorable elasticities. Overall, analysts have varied opinions on J.M. Smucker’s outlook, reflecting mixed results and future growth potential.
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