Evercore Sees 17% Upside in Smucker Shares with $117 Price Target
EVR•Evercore ISI launched coverage of The J. M. Smucker Company with an Outperform rating and $117 price target, implying roughly 17% upside. Analysts forecast 9% EPS compound annual growth through fiscal 2028, driven by over $200 million in productivity savings, improved coffee margins and Uncrustables nearing $1 billion in sales.
1. Coverage Initiation and Price Target
Evercore ISI initiated coverage of The J. M. Smucker Company with an Outperform rating and a price target of $117, suggesting approximately 17% upside from current levels. The rating reflects confidence in the company’s valuation versus center-store food peers and balance sheet strength.
2. EPS Growth and Cost Savings
Analysts project Smucker will achieve a 9% compound annual EPS growth rate between fiscal 2026 and 2028. They identify more than $200 million in potential productivity and cost savings opportunities across manufacturing, procurement and overhead.
3. Coffee and Brand Performance
Lower green coffee costs are expected to boost margins in fiscal 2027 and beyond, with strong results from Folgers and Café Bustelo. Smucker’s Uncrustables frozen sandwiches are approaching $1 billion in annual sales and are poised for mid- to high-single-digit growth.
4. Hostess Division Challenges and Governance
The Hostess snack business faces ongoing operational and integration headwinds since its 2023 acquisition, leading to impairment charges and sales pressure. Analysts note that recent board appointments and activist involvement could strengthen capital allocation and operational execution.
