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What Are Analysts Recommending for Hormel Foods Stock?

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Apr. 13 2018, Updated 8:00 a.m. ET

Rating synopsis

Most analysts who are providing recommendations on Hormel Foods (HRL) have maintained “hold” ratings on the stock. As of April 6, 2018, of the 14 analysts covering the stock, 36% have recommended “buys,” 57% have recommended “holds,” and the remaining 7.0% have recommended “sells.”

Following Hormel’s fiscal 1Q18 results announcement on February 22, 2018, many analysts revised their target prices on its stock. On February 27, 2018, Credit Suisse slashed its target price to $33.00 from $36.00. On February 26, 2018, Morgan Stanley slashed its target price to $26.00 from $27.00. Piper Jaffray cut its target price to $39.00 from $42.00, and Barclays reduced its target price to $38.00 from $40.00.

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Hormel Foods is a leading name in the food and beverage space. However, industry-wide challenges stemming from stiffening competition, the rise of private label products, commodity inflation, and a consumer preference shift toward organic and healthy foods are weighing down the bottom lines of major food retailers. Hormel has set up a strategic road map to achieve 5% growth in its sales by 2020. The company expects acquisitions to boost its growth prospects.

Currently, analysts’ 12-month average target price for HRL is $34.77, which reflects a 0.5% downside to the stock’s price as of April 6, 2018.

Peers’ ratings

Of the 19 analysts covering Tyson Foods (TSN), 63% have provided “buy” recommendations on its stock, while the remaining analysts have recommended “holds.” For Pilgrim’s Pride (PPC), 30.0% of the ten analysts covering the stock have given it “buy” recommendations, while the remaining analysts have recommended “holds.” Of the 14 analysts covering Conagra Brands (CAG) stock, 71% have provided “buy” recommendations, and 29% have recommended “holds.”

Currently, analysts’ target price for Tyson Foods is $83.53, reflecting a 19.1% upside to its share price as of April 6, 2018. Analysts’ mean target price for Pilgrim’s Pride stock is $31.14, which indicates a 31.3% upside to its price as of April 6. Analysts’ mean target price for Conagra is $42.07, which indicates a 14.5% upside to its price as of April 6.

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