SJM Stock Forecast & Price Target

J.M. Smucker is positioned for growth with an anticipated 3.5% to 5.5% increase in comparable sales and 2% to 4% growth on a reported basis, despite facing a 1.5% headwind from certain divestitures. The company's ability to implement price increases, particularly in the coffee segment where an estimated 20% increase is expected in the U.S., further bolsters its revenue prospects. Additionally, the free cash flow forecast of $875 million for fiscal 2026, reflecting a rise of $58 million from the prior year, is supported by a reduction in capital expenditure relative to sales, enhancing the company's financial resilience.

J.M. Smucker reported a fourth-quarter EPS of $2.31, which marked a 13% decrease from the previous year, despite marginally exceeding analyst estimates due to stronger gross margins. The company's guidance for fiscal year 2026 anticipates an 11% decline in EPS, significantly lower than prior estimates, primarily due to increased pricing pressures in its coffee segment, tariff impacts, and reduced profitability in the Sweet Baked Snacks sector. These factors underscore a challenging environment that could weaken the company's financial performance in the near term.