J.M. Smucker stock price target raised to $112 by DA Davidson

Published 28/08/2025, 14:22
J.M. Smucker stock price target raised to $112 by DA Davidson

Investing.com - DA Davidson raised its price target on J.M. Smucker (NYSE:SJM) to $112.00 from $104.00 on Thursday, while maintaining a Neutral rating on the food company’s 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 increase comes despite J.M. Smucker’s first quarter fiscal 2026 results failing to deliver the expected upside, which contributed to the stock’s underperformance in recent trading. While the company’s revenue grew 6.69% in the last twelve months, InvestingPro analysis suggests the stock is currently fairly valued based on its comprehensive Fair Value model.

DA Davidson noted that second quarter estimates were revised lower, setting up a back-half weighted year in what it described as an "uncertain environment."

Despite these challenges, the research firm acknowledged that "increased investor optimism is not unfounded," pointing to real momentum in the company’s coffee business and easier year-over-year comparisons beginning in the second half of fiscal 2026.

The firm also mentioned that the adverse effects of tariffs are now "more fully baked in" to expectations, though these impacts "could reverse if exemptions are applied." Looking ahead, InvestingPro analysis indicates positive momentum, with 9 analysts revising their earnings estimates upward for the upcoming period.

In other recent news, J.M. Smucker reported its first-quarter fiscal 2026 earnings with an adjusted earnings per share of $1.90, aligning with analysts’ expectations, and revenue totaling $2.11 billion. Despite meeting these projections, the results fell below Wall Street expectations, particularly impacting the coffee segment, which led to a price target reduction by BofA Securities to $118 from $120. Meanwhile, CFRA upgraded J.M. Smucker’s stock to Buy, raising its price target to $123, citing potential growth in fiscal year 2027, despite mixed first-quarter results.

Bernstein also raised its price target for J.M. Smucker to $110 from $94, highlighting better-than-expected coffee price elasticity and an increase in free cash flow guidance for FY26 due to anticipated tax benefits. Stifel maintained a Hold rating with a $110 price target after the company’s earnings per share exceeded their estimate by $0.02, though it fell short of consensus expectations by $0.03. The coffee business showed resilient volumes with favorable elasticities compared to historical averages. These developments reflect a mixed outlook for J.M. Smucker, with some analysts expressing optimism for future growth.

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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