JPMorgan Reassesses Hormel (HRL) Outlook With Fresh Model Update

Hormel Foods Corporation (NYSE:HRL) is included among the 15 Blue Chip Dividend Stocks to Build a Passive Income Porfolio.

On December 5, Piper Sandler analyst Michael Lavery raised the firm’s price target on Hormel Foods Corporation (NYSE:HRL) to $26 from $25 and kept a Neutral rating. The analyst noted that the company’s early update helped clear up most of the Q4 cost and margin pressures, which removed surprises from the quarterly results. The firm also appreciated the company’s guidance, adding that it struck a good balance between achievability and targeting growth in line that fits the company’s long-term goals.

Before announcing its earnings, Hormel Foods Corporation (NYSE:HRL) declared a 0.9% hike in its quarterly dividend on November 24. This increase has taken the company’s quarterly dividend to $0.2925 per share. The recent hike marked the company’s 60th consecutive year of dividend growth. Moreover, it has paid uninterrupted quarterly dividends to shareholders since it went public in 1928.

As a result of its restructuring efforts, Hormel Foods Corporation (NYSE:HRL) has recently announced its plans to reduce its workforce. The goal is to align its resources with long-term priorities and strengthen overall operations. John Ghingo, Hormel Foods Corporation (NYSE:HRL)’s president, made the following statement:

“Hormel Foods remains focused on growth — and growth requires continued investment. We’re directing resources toward technology, innovation, food safety and quality, and the capabilities that will shape our future. We’re confident that our ongoing investments will strengthen our brands, improve efficiency and ensure Hormel Foods stays competitive and responsive to the needs of our consumers and customers.”

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