Analyst Peter Galbo of Bank of America Securities reiterated a Hold rating on Hormel Foods, reducing the price target to $28.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Peter Galbo has given his Hold rating due to a combination of factors impacting Hormel Foods. The company’s third-quarter results were disappointing, primarily due to higher-than-expected commodity costs, particularly in pork and beef, which led to a gross margin miss. This unexpected rise in raw material costs negatively affected the stock price. Despite some positive signs, such as potential profit recovery in the turkey segment and Planters, there are concerns about execution risks in the near term.
Hormel Foods also acknowledged that its fiscal year 2026 goals were based on assumptions that have not materialized, including a volatile input cost environment and slower foodservice traffic recovery. The company has adjusted its financial outlook for fiscal year 2025, lowering its expected operating income and earnings per share. Given these challenges, Galbo has reiterated a Neutral rating, reflecting a cautious stance on the company’s ability to navigate these pressures effectively.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $31.00 price target.
HRL’s price has also changed moderately for the past six months – from $28.630 to $25.220, which is a -11.91% drop .