Hormel Foods downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Hormel Foods (HRL) to Neutral from Overweight with a price target of $23, down from $28. The firm believes margin headwinds are emerging for the company that its 2026 outlook does not contemplate. Rising freight costs seem more persistent than Hormel initially expected, for both spot rates and fuel surcharges, the analyst tells investors in a research note. JPMorgan also believes Hormel’s recent price increases, including for ground turkey and Planters, “seem to have triggered greater price elasticity than prior rounds of pricing.”