Morgan Stanley Trims JM Smucker (SJM) Price Target, Maintains Overweight Rating

The J.M. Smucker Company (NYSE:SJM) is one of 10 consumer defensive stocks to buy now.

Morgan Stanley revised its outlook on The J.M. Smucker Company (NYSE:SJM) following the company’s fiscal fourth-quarter earnings, lowering the price target to $115 from $124 while maintaining an Overweight rating. The move comes after the company posted quarterly results and issued guidance that fell short of analysts’ expectations, prompting concerns about profitability in several key segments.

A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer.

The firm highlighted a combination of challenges contributing to a projected low-double-digit decline in FY26 earnings. These include weaker-than-expected performance in its coffee division, added pressure from tariffs, and elevated marketing expenditures. Ongoing underperformance from the Hostess acquisition further weighed on the forward outlook. Despite the disappointing guidance, Morgan Stanley analysts noted the company’s forecast appears conservative in several areas. They added that J.M. Smucker’s valuation remains at the lower end of its peer group in the packaged food space, particularly among center-store staples.

The Overweight rating suggests Morgan Stanley continues to see longer-term potential in the stock, underpinned by cost discipline, category resilience, and brand equity across its core offerings. However, the path forward will require improved execution, particularly in coffee and snacking, and a clearer rebound in earnings momentum.

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