Wells Fargo Lowers J.M. Smucker (SJM) Price Target as Cost Pressures Persist

The J. M. Smucker Company (NYSE:SJM) is included among the 15 Blue Chip Stocks with Highest Dividends.

On April 8, Wells Fargo analyst Chris Carey lowered the firm’s price recommendation on The J. M. Smucker Company (NYSE:SJM) to $125 from $135. It reiterated an Overweight rating on the stock. The firm is cutting estimates across the sector ahead of earnings. It based those changes on detailed, company-level commodity assumptions built into its models. That approach makes the margin outlook more tied to how inflation is actually playing out, especially through Q4 2026 and 2027. A recovery is still expected, but not until 2028.

During its fiscal Q3 2026 earnings call, the company took a more careful tone on EPS guidance. Management said it still sees a path to the $9 midpoint. Any upside, in its view, would likely come from the coffee business, which is helping offset weaker trends in Sweet Baked Snacks. The company also made it clear that expectations for Sweet Baked Snacks are modest. It is working with a longer-term growth rate of around 2%, with the focus on stabilizing performance and improving execution. Looking to the fourth quarter, the segment is expected to remain soft. Management pointed to continued pressure in the category, along with a temporary disruption tied to a plant or manufacturing fire.

The J. M. Smucker Company (NYSE:SJM) produces and sells branded food and beverage products globally. Its portfolio is mainly sold through retail channels across North America.

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