AnalystConsensusTarget updated the narrative for HRL

Analysts have modestly lowered their price target for Hormel Foods to $34 from $36, citing weaker recent results and a cautious near-term outlook. However, they note there are some encouraging underlying trends.

Analyst Commentary

Recent analyst activity around Hormel Foods reflects a mix of optimism and caution, as professionals weigh the company's near-term performance against its broader fundamentals and outlook.

Bullish Takeaways

• Bullish analysts highlight that despite recent underperformance, certain underlying trends remain encouraging. This suggests potential stabilization or improvement over the longer term.
• There have been positive upgrades and coverage initiations. Renewed Overweight ratings and raised price targets from major institutions reflect confidence in Hormel Foods’ strategic positioning.
• Valuation remains attractive to some, with the stock seen as a top pick in the food producers sector. The company could potentially benefit from favorable industry dynamics such as ongoing inflation in food retail.
• The company's diversified portfolio and potential for recovery in agricultural products add to the optimism, especially as sector-specific headwinds begin to ease.

Bearish Takeaways

• Bearish analysts point to very weak fiscal third-quarter results and a fourth-quarter outlook that offers little sign of near-term improvement. This raises execution concerns.
• Near-term growth prospects remain subdued due to ongoing category and market share pressures that continue to weigh on core business segments.
• Some suggest that a full recovery in earnings is contingent on U.S. biofuels regulations, which introduces regulatory uncertainty into the company's future prospects.
• The lowered price targets reflect concerns about the pace of turnaround and question whether current valuation adequately compensates for operational risks.

What's in the News

• Hormel Foods named Paul Kuehneman as interim chief financial officer, effective October 27, 2025. Kuehneman brings over 30 years of finance leadership within the company and succeeds Jacinth Smiley. (Key Development)
• Limited-edition HORMEL BLACK LABEL Frank's RedHot flavored bacon launched, combining two popular brands and featuring a promotional #OnEverythingChallenge campaign with pro football running back Aaron Jones. (Key Development)
• The PLANTERS® brand reintroduced Special Reserve peanuts for National Nut Day and holiday gifting, highlighting larger, red-skinned Virginia peanuts for premium snacking. (Key Development)
• New trail mix blends from PLANTERS®, including White Chocolate Macadamia Nut and Chocolate Caramel Pecan Crunch, debuted nationwide. The products emphasize nut-forward snacking and bold flavors. (Key Development)
• SPAM® brand sushi offerings, such as musubi and norimaki, are now permanent at Kroger and Ralphs fresh sushi counters nationwide. The rollout was celebrated by the debut of the SPAM® Musubi Mobile food truck in Southern California. (Key Development)

Valuation Changes

• The Fair Value Estimate remains unchanged at $28.75, indicating a stable long-term valuation assessment.
• The Discount Rate holds steady at 6.78%, reflecting no change in the perceived risk profile.
• The Revenue Growth forecast edged down slightly to 2.47% from 2.48%.
• The Net Profit Margin nudged up marginally to 7.34% from 7.34% previously.
• The Future P/E ratio decreased modestly to 20.29x from 20.36x, reflecting a minor downward adjustment in earnings expectations.