William Blair analyst Jon Andersen has maintained their neutral stance on SJM stock, giving a Hold rating on March 3.
Jon Andersen’s rating is based on a combination of factors influencing JM Smucker’s financial performance. The company’s fiscal third-quarter earnings exceeded expectations, but the quality was mixed, with sales falling short while gross margin and operating expenses showed positive results. Management’s decision to lower fiscal 2025 sales guidance due to supply chain issues in the pet segment and weakness in sweet baked goods also played a role in the Hold rating.
Despite these challenges, the company raised its EPS guidance, benefiting from better-than-expected gross margin and cost synergies from Hostess. The expectation of slight organic sales growth, driven by improvements in certain product lines and positive pricing strategies, suggests a stable outlook. However, the ongoing integration of Hostess and the mixed performance of various brands indicate that JM Smucker’s overall shareholder return potential aligns with the broader market, justifying the Hold recommendation.
In another report released on March 3, Barclays also maintained a Hold rating on the stock with a $119.00 price target.
Based on the recent corporate insider activity of 27 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.