BofA Securities Upgrades J.M. Smucker to Buy
BofA Securities has upgraded J.M. Smucker (NYSE: SJM) from Neutral to Buy, setting a new price target of $130. The upgrade reflects growing confidence in the company’s earnings trajectory and the successful integration of its Hostess Brands acquisition, which had previously weighed on investor sentiment.
Why the Rating Changed
BofA Securities cited several key factors behind the upgrade:
- Hostess Integration Progress: According to BofA, previous downside concerns about integrating the Hostess Brands acquisition appear to be dissipating. The firm now sees the deal as a growth catalyst rather than a drag, suggesting that execution risks have diminished meaningfully.
- Earnings Growth and Margin Expansion: BofA said that J.M. Smucker is “poised for significant growth over the next 12 months,” pointing to expectations for both earnings growth and margin expansion as the company realizes synergies and operational efficiencies.
- Leadership Restructuring: In recent news, J.M. Smucker announced a significant leadership restructuring aimed at advancing its long-term growth strategy. The company eliminated its Chief Operating Officer position, with CEO Mark Smucker reassuming the President title, now serving as Chief Executive Officer, President, and Chair of the Board. This streamlining of the executive suite signals a more focused organizational structure.
- Broader Analyst Optimism: BofA is not alone in its more constructive view. TD Cowen also recently lifted its price target on SJM to $112 from $105, suggesting a broader shift in analyst sentiment toward the stock.
- Institutional Interest: Institutional investors have also been increasing their positions. Tredje AP fonden, for example, increased its holdings in J.M. Smucker by 117.8% during the third quarter, bringing its total position to 26,886 shares — a sign that professional money managers see value at current levels.
Dividend Profile
For income-focused investors, J.M. Smucker continues to offer a compelling dividend. Key details include:
- Annual Dividend: $4.40 per share
- Dividend Yield: 3.99%
- Quarterly Dividend: $1.10 per share
- Most Recent Ex-Dividend Date: February 12, 2026
The company recently declared a quarterly dividend of $1.10 per share, payable on March 2, 2026. J.M. Smucker has long been a staple among dividend investors, and its nearly 4% yield positions it as one of the more attractive income options within the consumer staples sector. The combination of BofA’s growth outlook and the current yield could make SJM appealing to investors seeking both capital appreciation and steady income.
Disclaimer
This post is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. DivRank.com is not responsible for any investment outcomes based on the information presented here.