Apr. 9 at 6:25 PM
JPMorgan downgraded Hormel Foods
Shares of Hormel Foods
were more than 2% lower in midday trading Thursday after JPMorgan lowered its rating on the stock, citing “mounting” cost pressures.
The firm downgraded Hormel Foods to neutral from overweight and lowered its price target to
$23 from
$28. That implies just more than 6% upside from its previous closing price.
This comes as the stock has fallen more than 11% in the last month and more than 28% in the past year.
“Relative to most of its lower growth large cap peers, we see a clearer path to earnings growth for HRL and believe the stock’s premium valuation on P/E and EV/EBITDA is justified by its superior balance sheet,” analyst Thomas Palmer wrote in a note.
$HRL