CTAs are almost max long in equities, have very limited room to buy: UBS
Investing.com - Wells Fargo (NYSE:WFC) raised its price target on J.M. Smucker (NYSE:SJM) to $120.00 from $115.00 on Monday, while maintaining an Overweight rating on the food products company. According to InvestingPro data, the stock currently trades near $110, with analyst targets ranging from $94 to $130.
The price target increase reflects Wells Fargo’s continued confidence in J.M. Smucker’s business prospects, particularly highlighting the company’s strong coffee segment performance, which achieved approximately 28% margins in fiscal year 2025 compared to consensus expectations of 22.5% for FY26. The company has demonstrated remarkable dividend consistency, maintaining payments for 55 consecutive years with a current yield of 4%.
Wells Fargo noted that while J.M. Smucker faces some valid concerns, including muted pet food consumption and soft performance in its Sweet Baked Snacks category, there are several positive factors supporting its bullish outlook.
The firm pointed to solid low-single-digit growth in the company’s Handheld and Spreads categories, and expects the Pet segment to recover in the second half as it moves past supply disruptions and destocking issues.
The new $120 price target is based on approximately 12 times Wells Fargo’s calendar year 2026 earnings per share estimate, with the firm seeing potential earnings catalysts ahead for J.M. Smucker.
In other recent news, J.M. Smucker reported better-than-expected fourth-quarter earnings, benefiting from improved gross margins and reduced SG&A expenses, although organic sales growth was weaker. Despite the positive quarterly performance, the company’s fiscal year 2026 guidance did not meet analysts’ expectations, with bottom-line projections falling short, even as top-line growth showed strength. In response, UBS lowered its price target for J.M. Smucker to $115 from $129, maintaining a Buy rating on the stock. Additionally, RBC Capital initiated coverage on the company with an Outperform rating, suggesting the current valuation offers a favorable risk-to-reward profile. In other developments, J.M. Smucker announced a 2% increase in its quarterly dividend, raising it to $1.10 per share. The company also plans to remove FD&C artificial colors from all its food products by the end of 2027, affecting items like sugar-free fruit spreads and ice cream toppings. Furthermore, Chief Marketing Officer Gail Hollander is set to retire in April 2026, after joining the company in 2023.
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