J.M. Smucker: UBS Maintains Buy Rating, Raises PT to $130 from $115

J.M. Smucker: UBS Maintains Buy Rating, Raises PT to $130 from $115

J.M. Smucker (NYSE: SJM) has received a boost from UBS, which maintained its Buy rating while raising the price target to $130 from $115. This update comes amidst a series of positive analyst reports and company developments. Wells Fargo recently raised its price target to $120, citing strong performance in the coffee segment and a robust dividend history [1]. Sunrun, another beneficiary of analyst upgrades, saw its price target increased by Clear Street to $14 [2].

UBS's decision to raise the price target reflects the firm's confidence in J.M. Smucker's ongoing business prospects. The company's coffee segment achieved a 28% margin in fiscal year 2025, surpassing consensus expectations [1]. Additionally, J.M. Smucker has demonstrated remarkable dividend consistency, maintaining payments for 55 consecutive years with a current yield of 4% [1]. Despite facing challenges in pet food consumption and the Sweet Baked Snacks category, the company's Handheld and Spreads categories showed solid growth, and the Pet segment is expected to recover in the second half of the year [1].

Recent earnings reports have also been positive for J.M. Smucker. The company reported better-than-expected fourth-quarter earnings, benefiting from improved gross margins and reduced SG&A expenses, although organic sales growth was weaker than expected [1]. The company's fiscal year 2026 guidance did not meet analysts' expectations, but top-line growth showed strength [1].

RBC Capital initiated coverage on J.M. Smucker with an Outperform rating, suggesting the current valuation offers a favorable risk-to-reward profile [1]. Additionally, J.M. Smucker announced a 2% increase in its quarterly dividend, raising it to $1.10 per share, and plans to remove FD&C artificial colors from all its food products by the end of 2027 [1]. The company also announced the retirement of its Chief Marketing Officer, Gail Hollander, in April 2026 [1].

Sunrun (RUN), a residential solar energy company, has also seen its price target raised by Clear Street to $14, maintaining a Buy rating [2]. Wells Fargo raised its price target to $14 from $8, citing positive guidance from the U.S. Treasury regarding the investment tax credit 48E [2]. Sunrun's recent partnership with Tesla Inc. in the Texas market is contributing to the positive sentiment, aiming to provide predictable electricity bills by pairing Tesla Powerwall energy storage with Sunrun's solar offerings [2].

These developments suggest a bullish outlook for both J.M. Smucker and Sunrun, with analysts expecting continued growth and favorable market conditions.

References:
[1] https://www.investing.com/news/analyst-ratings/jm-smucker-stock-price-target-raised-to-120-by-wells-fargo-on-coffee-margins-93CH-4197300
[2] https://www.ainvest.com/news/clear-street-raises-pt-sunrun-run-14-buy-rating-2508/