What Do Wall Street Analysts Recommend for Hormel Foods?



Target prices

Hormel Foods (HRL) will release its fiscal 3Q16 earnings on August 18. In this part, we’ll see what Wall Street analysts assigned as target prices for the next 12 months and their recommendations before the earnings. Survey results show that 9% of analysts rate Hormel a “buy,” ~82% rate it a “hold,” and 9% rate it a “’sell.”

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Consensus rating for Hormel Foods

The average broker target price for Hormel is $39.75. This represents a 7% rise compared to the closing price of $37.06 on August 12.

Below are the target prices and return potential for Hormel’s peers:

  • Tyson Foods (TSN) has a target price of $82.30 and a return potential of 9%.
  • ConAgra Foods (CAG) has a target price of $51.41 and a return potential of 10%.
  • Sanderson Farms (SAFM) has a target price of $88.17. It surpassed estimates by ~2%.

The First Trust Consumer Staples AlphaDEX Fund (FXG) invests 0.81% of its holdings in ConAgra, 3.6% of its holdings in Tyson, and 0.82% of its holdings in Hormel. The AdvisorShares TrimTabs Float Shrink ETF (TTFS) invests 1.3% of its portfolio in Sanderson Farms.

Recommendations for Hormel Foods

Stephens has given Hormel the highest target price of $50—a 35% rise compared to the closing price on August 12. Stephens rates the stock a “strong buy.” BMO Capital Markets has given Hormel the second-highest target price of $44—19% higher than the closing price on August 12. It rates Hormel as a “hold.”

Buckingham Research Group rates Hormel as a “hold.” It assigned it the lowest target price of $36—3% less than the closing price on August 12.

Hormel also received a “hold” rating from Edward Jones, Jefferies, Consumer Edge Research, Goldman Sachs, Morningstar, Credit Suisse, and Shore Capital Stockbrokers. Shore Capital Stockbrokers, Morningstar, and Edward Jones didn’t provide target prices for the stock.


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