J.M. Smucker (SJM) stock is likely to continue outperforming center store food peers with potential upside from Hostess divestiture optionality, BofA Securities said in a Wednesday research report.
BofA expects 2026, 2027, and 2028 EPS of $9.15, $10, and $10.70, respectively. Adjusted EPS is expected to grow mid-teens in Q1, accelerate further in Q2, decline to low-single-digit growth in Q3, and likely stay flat in Q4, with coffee remaining the primary driver, analysts wrote.
The latest stock momentum could be attributed to the company's $10 EPS guidance at midpoint for fiscal 2027 and conservative Q1 guidance, according to the note.
The company has a relatively robust balance sheet and cash generation record, supported by a capital allocation strategy that focuses on sustaining cash flow through reinvestment, modest dividend growth, and deleveraging, BofA stated.
The brokerage said it reiterated its buy rating on the stock and boosted its price target to $132 from $130.
Price: $116.05, Change: $+3.66, Percent Change: +3.25%