J.M. Smucker (SJM) Faces Lower Forward Estimates as JPMorgan Cuts Price Target

With an annual dividend yield of 4.25%, The J. M. Smucker Company (NYSE:SJM) is included among the 10 High Yield Stocks for Lasting Retirement Income.

On May 19, JPMorgan lowered its price recommendation on The J. M. Smucker Company (NYSE:SJM) to $120 from $130. It reiterated an Overweight rating on the shares ahead of the company’s fiscal fourth-quarter report on June 9. The firm said the target cut reflects lower forward estimates and reduced valuation multiples across the food group. JPMorgan expects organic sales growth of 4.8%, below the consensus estimate of 5.8%. The analyst pointed to slight weakness across most of Smucker’s business segments, including coffee.

Earlier in the month, on May 15, Evercore ISI initiated coverage on SJM with an Outperform rating and a $117 price target. The analyst said Smucker offers “a compelling valuation with superior growth prospects relative to peers.” The firm also projected a “robust” EPS compound annual growth rate of about 9% through FY28, mainly driven by recovery in the coffee segment and operational efficiencies.

The J. M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products worldwide. Its portfolio includes a range of well-known brands that are primarily sold to consumers through retail outlets across North America.

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