RBC Capital has reaffirmed its outperform rating on J.M. Smucker with a price target of $135, citing solid consumer trends and a neutral risk-reward profile despite the stock’s 33% year-to-date gain.
The firm expects the company’s quarterly results to exceed consensus estimates, supported by strong performance in coffee and the Uncrustables product line. RBC also highlighted a tailwind from tariff refunds received during the quarter, which it views as a positive for fiscal 2027 guidance.
Six analysts have raised earnings estimates for the upcoming period, reflecting growing confidence in the company’s outlook. UBS lifted its price target to $142 with a buy rating, citing robust performance in the packaged foods sector. TD Cowen raised its target to $123, emphasizing retail sales outperformance driven by sustained coffee pricing despite expectations of future declines.
Jefferies maintained its buy rating, pointing to the 30% surge in arabica coffee prices since June as a key driver of J.M. Smucker’s performance. The company’s decision not to reduce coffee prices was seen as a strategic move that could benefit fiscal 2027 guidance, while TD Cowen credited the stance for pushing retail sales higher.
Bank of America noted that recent price cuts across the packaged food industry have failed to boost sales volumes, prompting firms to shift strategies toward inflation-driven price hikes, premium product focus, or lower price-point offerings. Morgan Stanley reported mixed performance and fluctuating market share in pet food and cat litter categories.
J.M. Smucker’s stock closed at $124.32 on Aug. 21, up 1.03%, and traded at $124.35 in after-hours trading at 16:50:58. The 52-week high stands at $127.64, while RBC’s $135 target implies further upside potential from current levels.
