Morgan Stanley Boosts Smucker Target to $110 on 45% Snack Profit Gain
SJM•Morgan Stanley raised its price target for J.M. Smucker to $110 from $106, reflecting confidence in profitability driven by falling coffee costs and strong brand momentum. Smucker forecasts fiscal 2027 net sales down 3–4% while boosting adjusted EPS to $9.75–$10.25, supported by 45% profit growth in Sweet Baked Snacks and $1B Uncrustables sales.
1. Analyst Raises Price Target
Morgan Stanley lifted its price target for J.M. Smucker to $110 from $106, highlighting confidence in the company’s profitability driven by declining input costs and strong performance from key brands.
2. Fiscal 2027 Guidance
The company forecasts fiscal 2027 net sales to fall 3–4% while raising its adjusted EPS outlook to $9.75–$10.25, signaling a strategic emphasis on margin expansion over top-line growth.
3. Cost Tailwinds and Brand Performance
Arabica coffee futures have plunged about 45% from previous highs, enabling mid-single-digit declines in green coffee prices; Uncrustables sales topped $1B and Sweet Baked Snacks profit rose 45%.
