J.M. Smucker stock rating upgraded by JPMorgan on coffee resilience

Published 20/08/2025, 09:54
J.M. Smucker stock rating upgraded by JPMorgan on coffee resilience

Investing.com - J.M. Smucker (NYSE:SJM) received an upgrade from JPMorgan on Wednesday, which raised its rating from Neutral to Overweight while significantly increasing its price target to $129.00 from $102.00. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $94 to $130.

The upgrade comes as JPMorgan anticipates a favorable setup for the company heading into its first-quarter fiscal 2026 earnings, scheduled for August 27 according to InvestingPro, primarily driven by resilient coffee volumes despite higher pricing implemented by the company. The stock has shown resilience with a 6.5% return over the past six months.

JPMorgan noted that while coffee inflation is likely to be slightly higher for fiscal year 2026 due to increased tariffs on Brazilian coffee, the strong volume performance could help offset these pressures.

The firm pointed out that although underlying coffee prices have decreased recently, this benefit will likely materialize more in fiscal 2027 than 2026 due to J.M. Smucker’s existing hedge positions.

Long-term, JPMorgan believes J.M. Smucker is better positioned to drive top-line and earnings growth compared to similarly valued companies, citing continued growth for Uncrustables products, an expected rebound in pet food demand, and relative stability in the coffee segment. The company has maintained dividend payments for 55 consecutive years, demonstrating consistent shareholder returns. For deeper insights into SJM’s growth prospects and financial health, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, J.M. Smucker Co. announced a 2% increase in its quarterly dividend, raising it to $1.10 per share, payable on September 2, 2025. Additionally, the company’s shareholders re-elected nine directors for terms expiring in 2026 and approved other proposals at the virtual annual meeting. In terms of analyst activity, Wells Fargo (NYSE:WFC) raised its price target for J.M. Smucker to $120, citing strong performance in the company’s coffee segment, which achieved 28% margins in fiscal year 2025. RBC Capital also initiated coverage with an Outperform rating and a $130 price target, suggesting a favorable risk-to-reward profile for the company. In corporate leadership news, Chief Marketing Officer Gail Hollander is set to retire in April 2026, after joining the company in 2023. These developments reflect the ongoing strategic and financial adjustments at J.M. Smucker.

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