In a report released yesterday, Peter Galbo from Bank of America Securities reiterated a Hold rating on JM Smucker (SJM – Research Report), with a price target of $118.00.
Peter Galbo has given his Hold rating due to a combination of factors impacting JM Smucker’s financial outlook. The company has provided insights into its FY26 earnings potential, suggesting that non-coffee related earnings could surpass their long-term growth targets. However, uncertainties around green coffee costs and their potential impact on earnings growth remain a concern, as these costs could offset the anticipated growth. This uncertainty has led to a slight reduction in the FY26 earnings per share estimate, reflecting a flat year-over-year operating profit growth.
Additionally, while JM Smucker’s third-quarter earnings exceeded expectations due to higher coffee profits, the company faced challenges such as a supply chain disruption affecting dog treats and execution issues with Hostess. These factors, along with a significant impairment related to Hostess, have influenced the Hold rating. The company’s revised financial outlook for FY25, with lowered sales projections but improved earnings expectations, further supports the neutral stance, as execution risks remain a concern.
In another report released yesterday, CFRA also maintained a Hold rating on the stock with a $126.00 price target.
Based on the recent corporate insider activity of 29 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.