Cautious Hold Rating for JM Smucker Amid Strong Retail Performance and Future Profit Uncertainties

Jefferies analyst Robert Dickerson reiterated a Hold rating on JM Smucker (SJM – Research Report) today and set a price target of $118.00.

Robert Dickerson’s rating is based on JM Smucker’s relative strength compared to its peers, as evidenced by its strong retail sales performance. The company has shown resilience in its coffee segment with limited price elasticity, and it has achieved notable distribution gains in its Uncrustables line. Additionally, growth in Jif and Meow Mix has helped counterbalance weaknesses in other areas such as Hostess and Milk-Bone.
Despite these positive indicators, there are concerns about the future profit outlook for fiscal year 2026. Uncertainties include potential tariff-related costs impacting the coffee segment, challenges in unlocking pet stranded overheads, and the need for reinvestment in the Hostess brand. While there are paths to potential growth, such as stabilizing the Hostess business and managing tariff costs, these uncertainties lead to a cautious stance, resulting in a Hold rating.

In another report released today, Bernstein also reiterated a Hold rating on the stock with a $104.00 price target.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SJM in relation to earlier this year.