Hormel Foods (HRL) Earns Target Hike from BofA after Strong Quarterly Results

Hormel Foods Corporation (NYSE:HRL) is included among the 13 Best Dividend Stocks to Buy Under $25.

On May 29, BofA raised its price recommendation on Hormel Foods Corporation (NYSE:HRL) to $25 from $23. It reiterated a Neutral rating on the shares. The firm said the stock’s reaction to the company’s second-quarter adjusted EPS beat was “largely relief-driven,” reflecting cautious investor positioning ahead of the earnings release. According to the analyst, investors were encouraged that Hormel did not cut its guidance and that confidence in the company’s underlying execution continues to improve. BofA added that its higher price target reflects increased earnings estimates and better visibility into future earnings performance.

Also on May 29, Stephens raised its price goal on Hormel Foods to $25 from $22. It maintained an Equal Weight rating on the stock. Analyst Pooran Sharma told investors that the firm “would be more inclined to be more constructive” if the second-quarter earnings beat had been accompanied by a guidance increase or a clearer path to performance improvement in the second half of the year. While Stephens acknowledged that there is “likely conservatism behind management’s assumptions,” the firm said it would prefer to see additional evidence of execution before becoming more positive on the shares.

Hormel Foods Corporation (NYSE:HRL) is a global branded food company that develops, processes, and distributes a wide range of food products across multiple markets.

READ NEXT: 12 Ultra-High Dividend Stocks to Buy for Income Investors and Top 12 Dividend Stocks to Buy According to Billionaire Cliff Asness

Disclosure: None. Follow Insider Monkey on Google News.