J.M. Smucker (SJM) is expected to reiterate its fiscal 2027 guidance on the base case scenario, when it reports Q1 results on Wednesday before the markets open, UBS said in a note emailed Thursday.

The company is believed to be offering a high degree of visibility to long-term top-line growth, and near-term earnings expectations appear achievable, UBS noted, adding that risk/reward skews to the upside given shares still trade at a discount to packaged food peers despite a more durable long-term growth algorithm.

UBS said gross margin expansion in the quarter is likely to be more modest than for the full year given a lack of deflation, with coffee pricing offsetting declining volumes as price increases begin to roll off next quarter.

The firm maintained its buy rating on the stock and raised its price target to $142 from $130 prior, citing higher estimates and peer multiple expansion.

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