Update shared on 27 Nov 2025
Fair value Decreased 1.39%The consensus analyst price target for Hormel Foods has decreased, dropping from $30 to $27 per share. Analysts cited weaker-than-expected quarterly results and a cautious near-term outlook, despite some positive underlying trends.
Analyst Commentary
Recent research updates reveal a mix of cautious sentiment and selective optimism among analysts regarding Hormel Foods’ share outlook and operational performance.
Bullish Takeaways
- Bullish analysts maintain an Overweight rating, even though price targets have been lowered. This indicates a belief in the company’s long-term value proposition.
- Some underlying business trends are described as encouraging, which suggests potential for improved operating performance over time.
- Analysts updating models for the upcoming fiscal quarter report continued engagement with Hormel’s growth prospects.
Bearish Takeaways
- Multiple analysts have reduced their price targets following weaker-than-expected quarterly results, which reflects near-term uncertainty in valuation.
- The fiscal Q4 outlook is perceived as lacking signs of improvement, raising concerns about execution and growth momentum in the short term.
- Persistent headwinds are causing a more cautious stance regarding the pace of recovery, which impacts confidence in upgraded estimates or aggressive targets.
What's in the News
- President Donald Trump plans to reduce tariffs on beef, coffee, tomatoes, and bananas. This move could lower grocery costs for consumers and impact Hormel Foods as well as other major food companies (Bloomberg).
- Hormel Foods announced a 1% increase in its quarterly dividend, marking the company's 60th consecutive annual dividend hike.
- The company initiated a corporate restructuring to better align with strategic goals. This includes voluntary early retirement and a reduction of approximately 250 corporate and sales positions.
- Hormel raised its net sales guidance for the upcoming fourth quarter and now expects sales to reach the high end of its previous range.
- Paul Kuehneman has been named interim chief financial officer and controller, effective late October 2025.
Valuation Changes
- Fair Value per share has decreased slightly, moving from $27.06 to $26.69.
- Discount Rate has remained virtually unchanged, edging down from 6.96% to 6.95%.
- Revenue Growth expectation has risen fractionally, from 1.78% to 1.78%.
- Net Profit Margin has dipped marginally, declining from 7.26% to 7.26%.
- Future P/E ratio has dropped modestly, falling from 19.80x to 19.53x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.