BofA Sees Steady Earnings Momentum Building at J.M. Smucker (SJM)

Core Viewpoint - The J. M. Smucker Company (NYSE:SJM) is experiencing steady earnings momentum, with positive adjustments to future earnings estimates following its Q2 results [2] Financial Performance - In Q2, net sales reached $2.3 billion, an increase of $58.9 million, or 3%, compared to the same period last year [4] - The coffee segment reported a profit margin of 18.2% in Q2, with expectations for margins to improve in Q3 and exceed 20% in Q4 as tariff pressures ease [4] Business Segments - The Sweet Baked Snacks business and the Hostess brand are showing ongoing progress, with management noting improved performance in convenience stores [3] - Pet treats are expected to return to growth, and Uncrustables is on track to surpass $1 billion in sales by the end of the year [3] Analyst Outlook - BofA raised its price target for SJM to $120 from $118 while maintaining a Neutral rating, citing the company's adjusted EPS exceeding expectations [2] - The firm increased its FY27 adjusted EPS estimates to $10 from $9.8 and FY28 forecasts to $10.80 from $10.60, indicating potential for algorithm-level growth [2]