JPMorgan reduced its price target for The J. M. Smucker Company citing weaker organic sales growth and valuation multiples in the food sector.
JPMorgan lowered its price target for The J. M. Smucker Company (NYSE:SJM) to $120 from $130, maintaining an Overweight rating ahead of its fiscal fourth-quarter report on June 9. The adjustment reflects reduced forward estimates and lower valuation multiples across the food group.
The firm expects organic sales growth of 4.8%, below the consensus estimate of 5.8%, citing slight weakness in most of Smucker’s segments, including coffee. Earlier, Evercore ISI initiated coverage with an Outperform rating and a $117 target, projecting a 9% EPS growth rate through FY28 driven by coffee recovery and operational efficiencies.
SJM, which manufactures branded food and beverage products, faces mixed analyst sentiment amid broader sector valuation pressures.