Stephens Increases Hormel Foods (HRL) Price Objective but Stays Neutral

With an annual dividend yield of 5% as of May 29, Hormel Foods Corporation (NYSE:HRL) is included among the Dividend Aristocrats Ranked By Yield: Top 10 Stocks. 

On May 29, Stephens raised the firm’s price recommendation on Hormel Foods Corporation (NYSE:HRL) to $25 from $22. It kept an Equal Weight rating on the shares. In a note to investors, analyst Pooran Sharma said the firm would have taken a more constructive view if the company’s second-quarter earnings beat had been accompanied by a guidance increase or a clearer path for performance in the second half of the year. While the analyst acknowledged that there is “likely conservatism behind management’s assumptions,” Stephens said it would like to see additional evidence of execution before becoming more optimistic.

The same day, BofA raised its price goal on Hormel Foods to $25 from $23 and maintained a Neutral rating on the stock. According to the firm, investors had entered the earnings release with a cautious outlook, making the stock’s positive reaction to the Q2 adjusted EPS beat largely driven by relief. BofA noted that the company did not lower its guidance and that confidence in underlying execution appears to be improving. The firm said its higher price target reflects increased earnings estimates and better visibility into future results.

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. The company operates through three segments: Retail, Foodservice, and International.

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