Investing.com - Jefferies maintains its Hold rating on Keurig Dr Pepper stock and Buy rating on J.M. Smucker shares as arabica coffee prices climb approximately 30% since June.

Coffee companies began the second half of the year anticipating coffee prices would provide a tailwind, according to Jefferies. Arabica coffee prices have instead rebounded sharply over the past two months.

An earthquake in Colombia this week added fresh uncertainty to the market. The seismic event disrupted a road that carries a significant portion of the country's coffee exports.

The ratings on Keurig Dr Pepper (NYSE: KDP) and J.M. Smucker (NYSE: SJM) are maintained by Jefferies analyst Scott Marks. Jefferies holds a Hold rating on KDP and a Buy rating on SJM.

The rising coffee prices present a potential headwind for coffee companies heading into the first half of 2027, reversing earlier expectations for the commodity cost environment.