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Investing.com - JPMorgan upgraded Hormel Foods (NYSE:HRL) from Neutral to Overweight on Wednesday, raising its price target to $34.00 from $29.00. The stock, currently trading near its 52-week low, appears undervalued according to InvestingPro Fair Value analysis.
The investment bank cited Hormel’s pork and turkey-centric portfolio as being well-positioned against current health trends that favor protein and avoid artificial ingredients. The $11.9 billion market cap company has maintained a strong dividend profile, having raised dividends for 32 consecutive years, with a current yield of 4.08%.
JPMorgan anticipates potential earnings upside in the third quarter of 2025, with price increases on ground turkey, improved Planters supply chain, and rabbi trust gains expected to more than offset potential margin pressure from rising pork costs.
For fiscal year 2026, the bank expects earnings growth to be driven by a continued recovery at Planters and higher whole turkey prices, even if Hormel’s productivity program doesn’t deliver the operating profit improvement the company has guided to.
The upgraded rating comes as JPMorgan analysts believe it is "tactically a good time" to own Hormel shares.
In other recent news, Hormel Foods Corporation has made significant leadership changes. The company announced the appointment of Jeffrey M. Ettinger as interim CEO and John F. Ghingo as president, effective July 14, 2025, following the planned retirement of current CEO James P. Snee. Snee will transition to a special advisor role until his employment ends in October 2025. Additionally, Hormel Foods has promoted Paul Peil to vice president of marketing for Fresh and Ready Meats, while Christie Crouch joins as vice president of marketing for Snacking and Entertaining.
In analyst coverage, Goldman Sachs initiated Hormel Foods with a buy rating, citing the company’s robust packaged food portfolio and diverse brand offerings. Meanwhile, Piper Sandler maintained its Neutral rating with a $33 price target, indicating that Hormel might be at a turning point for EBIT growth. These developments come amid strategic leadership transitions and analyst insights into the company’s business trajectory.
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