J.M. Smucker stock price target raised to $130 from $115 at UBS

Investing.com - UBS raised its price target on J.M. Smucker (NYSE:SJM) to $130.00 from $115.00 on Wednesday, while maintaining a Buy rating on the food company’s shares. According to InvestingPro data, this target represents the highest among analysts, with current consensus recommendations leaning neutral.

The price target increase reflects UBS’s updated quarterly and fiscal year 2026 estimates, which now account for recent shifts in consumer demand and changes in the cost and tariff landscape. UBS revised its first-quarter earnings per share estimate upward to $1.93 from $1.81 previously. This aligns with broader analyst sentiment, as InvestingPro data shows seven analysts have recently revised their earnings estimates upward.

J.M. Smucker shares have rallied approximately 18% since early June, outperforming packaged food peers who declined 4% during the same period. The strong performance follows what UBS described as a disappointing outlook provided by the company in early June. Notably, the company has maintained dividend payments for 55 consecutive years, with a current yield of 3.9%.

UBS noted that investor sentiment toward J.M. Smucker has become "far more constructive," primarily due to strong tracked data and coffee elasticities holding better than anticipated. The firm expects solid first-quarter results driven by better-than-expected top-line growth.

Despite concerns about tariffs creating headwinds in the second half of the year, UBS believes J.M. Smucker "still sets up favorably" and offers better top and bottom line visibility compared to industry peers, with valuation approximately in line with historical averages relative to competitors.

In other recent news, J.M. Smucker has seen several significant developments. JPMorgan upgraded the company’s stock rating from Neutral to Overweight, raising the price target to $129.00, citing resilient coffee volumes despite higher pricing. Wells Fargo also increased its price target for J.M. Smucker to $120.00, maintaining an Overweight rating, due to strong performance in the coffee segment, which achieved approximately 28% margins in fiscal year 2025. Additionally, the company announced a 2% increase in its quarterly dividend, raising it to $1.10 per share, payable on September 2, 2025.

Shareholders of J.M. Smucker re-elected nine directors during the annual meeting and approved the auditor and executive pay. In leadership changes, Chief Marketing Officer Gail Hollander is set to retire in April 2026, after a notable career both at J.M. Smucker and previously at Publicis Groupe (EPA:PUBP). These recent developments reflect ongoing confidence in the company’s strategic direction and financial health.

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