J.M. Smucker (SJM) delivered "solid" fiscal Q4 organic sales growth and earnings, while issuing a fiscal 2027 earnings per share outlook that exceeded expectations, Morgan Stanley said in a note Wednesday.
Smucker's guidance implies about 9% EPS growth at the midpoint for fiscal 2027, with Morgan Stanley noting the company's cost outlook was more favorable than expected following the Iran conflict.
The investment bank noted that revenue guidance appears "conservative," with fiscal 2027 sales expected to decline 3% to 4%, while margins are expected to benefit from "lower green coffee costs" and easing tariff impacts, the report said, adding that potential "tariff refunds" could provide additional upside.
Following the results, Morgan Stanley raised the company's fiscal 2027 EPS estimates by 3.2%. It raised the price target to $110 from $106, while maintaining an equal weight rating, citing a "balanced" risk-reward profile after the stock's recent gain.
Shares of J.M. Smucker were up more than 3% in Wednesday trading.
Price: $115.84, Change: $+3.45, Percent Change: +3.07%