JPMorgan sees three major beneficiaries from reduced agricultural tariffs

JPMorgan views Hershey (HSY), J.M. Smucker (SJM) and McCormick (MKC) as the biggest beneficiaries in the food producer group from the White House’s executive order that exempts a range of agricultural products that cannot be sourced from the U.S. from import tariffs, most notably cocoa, coffee, and many spices and seasonings. This order could help to alleviate the “sizable earnings overhangs” on the three companies from tariffs, the analyst tells investors in a research note. JPMorgan sees Hormel Foods (HRL), Lamb Weston (LW), Kraft Heinz (KHC), and Conagra Brands (CAG) as more modest beneficiaries from the tariff relief.