J.M. Smucker (SJM) PT Lowered to $117 at UBS, 'Shares Particularly Attractive on Weakness'

UBS analyst Peter Grom lowered the price target on J.M. Smucker (NYSE: SJM) to $117.00 (from $120.00) while maintaining a Buy rating.

The analyst commented, "SJM reported an in-line 2Q relative to consensus and slightly above our estimates largely due to stronger sales/OPM with the company's FY26 EPS outlook narrowing to the midpoint. The stock traded lower on the day (-3.7% vs. +1.3% for the XLP), which we believe was driven by less upside in the outlook than some were hoping for heading into the event as well as positioning with our discussions indicating that SJM remained a crowded long. We can understand the disappointment to a degree as the potential earnings recovery/upside in FY26 is far lower than what investors were contemplating several months ago. However, taking a step back, we remain encouraged by (1) solid +MSD organic top line growth despite what remains a challenging category backdrop for Packaged Food and (2) the fact that the updated FY26 guidance seems more than achievable to us. As we look beyond this year, we see the building blocks for a strong FY27E driven by benefits from lower tariffs as well as improving demand across the remainder of the portfolio (not simply Coffee pricing). With shares still attractive to us on both an absolute and relative basis and better fundamental visibility than most in the space, we think the risk/reward skews to the upside and view the shares as particularly attractive on the weakness."

You May Also Be Interested In

• Phillip Securities Reiterates Buy Rating on Sea Ltd. (SE)
• Keefe, Bruyette & Woods Starts Columbia Financial Inc (CLBK) at Outperform
• Palo Alto Networks (PANW) PT Raised to $400 at TD Cowen