Bank of America just raised its EUR/USD forecast
On Wednesday, UBS began coverage of J.M. Smucker Company (NYSE:SJM), assigning a Buy rating and setting a price target of $134.00 for the stock. The new target represents a potential 15% increase from the stock’s current trading level of $117.73. According to InvestingPro data, analyst targets for SJM range from $104 to $135, with the stock showing strong returns over the past three months.
The company, known for its presence in the U.S. food industry, has shown consistent growth in its categories, with revenue growing 7.07% in the last twelve months. UBS highlighted J.M. Smucker’s successful history of maintaining or increasing its market share, which supports the firm’s forecast of low single-digit organic revenue growth over the next 12 to 18 months. The company’s stability is further evidenced by its impressive 55-year streak of maintaining dividend payments, currently yielding 3.67%.
UBS acknowledged the impact of coffee inflation on the company’s earnings per share (EPS) growth, which is expected to be below J.M. Smucker’s long-term high single-digit algorithm in the fiscal year 2026. However, the firm believes that the market has already accounted for this in the stock’s current valuation. The stock is currently trading at a 34% discount compared to its historical average against peers, which is more significant than the long-term average discount of 26%. With a beta of 0.34, the stock offers defensive characteristics, and InvestingPro analysis suggests the stock is currently undervalued. Get access to 6 additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
The research firm posits that the market may be overestimating the potential for a year-over-year decline in earnings, which UBS views as an unlikely scenario. As the market’s visibility improves and investors recognize J.M. Smucker’s ability to sustain solid bottom-line growth amidst an uncertain economic environment, UBS expects the stock to start trending upwards. Analysts tracked by InvestingPro predict the company will return to profitability this year.
In summary, UBS’s initiation of coverage on J.M. Smucker comes with a positive outlook on the company’s performance and stock potential, citing robust category growth and market share stability as key factors. The firm’s anticipation of a positive shift in investor sentiment is reflected in the set price target, which suggests a favorable upside to the stock’s value.
In other recent news, J.M. Smucker has declared a dividend of $1.08 per share, scheduled for payment on June 2, 2025, to shareholders of record as of May 16, 2025. Morgan Stanley (NYSE:MS) initiated coverage of J.M. Smucker with an Overweight rating, setting a price target of $123.00, citing the company’s strong brand portfolio and potential growth in its Uncrustables and coffee segments. Meanwhile, DA Davidson maintained a Neutral rating on J.M. Smucker with a price target of $120.00, expressing concerns over the company’s coffee segment and the integration of Hostess Brands (NASDAQ:TWNK). Analysts at DA Davidson observed an acceleration in sales growth for J.M. Smucker in recent weeks compared to longer-term trends, despite a general slowdown in the Packaged Food sector. Additionally, J.M. Smucker is part of a group of major US food corporations advocating for tariff exemptions on certain imports like cocoa and fruit, aiming to support manufacturers and reduce consumer inflation. The company has also announced its Annual Meeting of Shareholders will be held virtually on August 13, 2025. These developments reflect J.M. Smucker’s strategic positioning and ongoing efforts to address market challenges.
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