Morgan Stanley analyst Megan Alexander has maintained an Equal-Weight rating on JM Smucker (NYSE: SJM) and raised the price target to $110 from $106. The revised target suggests a modest adjustment in the stock's potential upside following a recent evaluation.

The rating indicates that the stock is expected to perform in line with the broader market. The price target increase of $4 implies a slight improvement in the company's projected valuation based on current market conditions.

Rating and Price Target Details

The following table outlines the revised rating and price target for JM Smucker:

The Equal-Weight stance suggests that investors should hold positions proportional to the stock's weight in the benchmark index. The price target revision provides a specific reference point for the stock's future performance.

Megan Alexander's analysis focuses on the company's current financial position and market dynamics. The adjustment to $110 aligns with the latest assessment of JM Smucker's earnings potential and market environment.

JM Smucker projects fiscal year 2027 net sales to decrease 3.0 to 4.0 percent to a range of $8.689 billion to $8.779 billion, falling short of the $9.107 billion analyst estimate. The company forecasts adjusted earnings per share between $9.75 and $10.25, compared to the $9.79 analyst estimate. The guidance reflects an adjusted gross profit margin of approximately 38.0 percent and an adjusted effective income tax rate of 24.3 percent. Free cash flow is projected to be approximately $1.0 billion.

For the fourth quarter ended April 30, 2026, net sales totaled $2,268.1 million, a 6 percent increase from the prior year. This growth was driven by a 10 percentage point increase from net price realization, primarily in coffee and sweet baked goods, partially offset by a 4 percentage point decrease in volume and mix. Adjusted operating income increased 14 percent to $482.1 million. Net income attributable to the company was $388.1 million, or $3.64 per diluted share, compared to a net loss of $729.0 million, or $6.85 per diluted share, in the prior year.

For the full fiscal year 2026, net sales increased 4 percent to $9.1 billion. Adjusted earnings per share was $9.15, a decrease of 10 percent. The company reported a net loss of $138.7 million, or $1.30 per diluted share, compared to a net loss of $1,230.8 million, or $11.57 per diluted share, in the prior year. Cash provided by operations for the fiscal year was $1.5 billion, while free cash flow was $1.2 billion.

FY26 Performance Summary