Jefferies upgraded J.M. Smucker from Hold to Buy, raising its price target to $115 after the stock dipped post-earnings. The firm believes the market overreacted to minor forecast adjustments, particularly as Smucker’s long-term fundamentals remain solid. Although 2026–27 earnings were slightly trimmed, Jefferies sees the recent weakness as a buying opportunity, not a long-term concern.
🥪 Strength in core categories like coffee and Uncrustables sandwiches has helped stabilize the company’s revenue outlook. Despite pressure in baked goods and competitive snacks, Smucker’s pricing power and strong distribution gains have helped it weather the current environment better than expected.
💰 Smucker also delivers strong dividend appeal. The current yield hovers around 3.8%, supported by solid cash flows—approximately $816 million in free cash flow last fiscal year. The company returned nearly $455 million to shareholders in dividends and buybacks, and with a payout ratio under 60%, it retains flexibility to raise distributions going forward.
🛒 With a defensive product portfolio rooted in household staples and a solid track record of rewarding shareholders, J.M. Smucker stands out as a value opportunity. Jefferies’ upgrade reflects renewed confidence in the brand’s resilience, operational execution, and attractive income potential.