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Research Alert: CFRA Keeps Hold Rating On Shares Of Hormel Foods Corporation

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price by $2 to $25, 16.7x our FY 26 (Oct.) EPS view, a discount to HRL's three-year historical forward P/E average of 19.2x given margin erosion. We keep our FY 26 EPS estimate unchanged at $1.50 and FY 27's at $1.56 on respective revenue projections of $12.39B (+2%) and $12.78B (+3%). We are encouraged by HRL's continued top-line momentum, delivering its sixth consecutive quarter of organic net sales growth with all three segments contributing. In our view, the double-digit adjusted EPS growth, fueled by margin expansion and improved manufacturing performance, was a key positive. However, we believe the guidance for a more challenging third quarter, due to cost pressures and a planned inventory rebalancing, is a point of caution. This effectively shifts the bulk of expected bottom-line growth to the fourth quarter, though we note management remains confident in achieving the upper half of its annual earnings range.

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