Investing.com -- UBS has initiated coverage on six packaged food companies, with diverging views based on top-line growth prospects, valuation, and market dynamics.
The firm issued Buy, Neutral, and Sell ratings in a new report focused on the sector’s near-term outlook.
UBS’s bullish call was on JM Smucker (NYSE:SJM), which received a Buy rating and a $134 price target, implying 15% upside.
“SJM operates in attractive U.S. categories that have displayed favorable growth characteristics over time,” analysts wrote. “Although coffee inflation is likely to result in EPS growth below the company's +HSD LT algorithm in FY26, we think this is priced in.”
By contrast, General Mills (NYSE:GIS) and Campbell Soup (NYSE:CPB) were both initiated at Sell. UBS expects GIS to face “a difficult top line environment as share losses more than offset positive category growth,” forecasting -0.2% organic growth in fiscal 2026.
On CPB, UBS cited “category growth still under pressure and share losses continuing,” adding that “delivering meaningful EPS growth will prove difficult.”
Simply Good Foods, Utz Brands, and BellRing Brands (NYSE:BRBR) were each initiated at Neutral.
UBS said SMPL is positioned “to deliver consistent growth,” but noted “this is largely priced in.”
UTZ, which UBS believes can “gain share in U.S. salty snacks,” is limited by weak category trends. For BRBR, UBS expects “double-digit organic sales growth” but sees the upside as already reflected in consensus estimates and valuation.
