Update shared on27 Aug 2025
Fair value Increased 1.71%Analysts have raised Hormel Foods’ price target modestly to $33.00, citing improved earnings outlook from Planters, stabilized turkey supply, ongoing cost savings, and attractive valuation supporting resilient long-term growth.
Analyst Commentary
- Bullish analysts expect a recovery in Hormel’s earnings outlook, driven by improvements in the Planters business and a stabilized turkey supply situation.
- Ongoing cost savings initiatives are seen as catalysts for margin improvement and profitability.
- Hormel’s diversified portfolio across key protein categories and market occasions is viewed as supporting resilient growth prospects.
- Analysts believe consensus estimates underestimate Hormel’s ability to reaccelerate growth into fiscal 2026.
- The stock’s current valuation is considered attractive relative to its long-term growth potential.
What's in the News
- Hormel expanded the SPAM® sushi lineup nationwide at Kroger and Ralphs, supported by the launch of the SPAM® Musubi Mobile food truck and a digital coupon campaign for National SPAM® Musubi Day.
- The SPAM® brand partnered with Dr. Seuss Enterprises for a limited-edition Green Eggs & SPAM® Classic Twin Pack at select Walmart stores, introducing collectible packaging, themed recipes, and exclusive merchandise.
- Jeffrey M. Ettinger returned as interim CEO for a 15-month period starting July 14, 2025; the CEO search committee has been dissolved with a permanent CEO to be named in October 2026.
- No shares were repurchased in the latest tranche; cumulative buybacks under the ongoing program total 16,268,506 shares for $555.78 million.
- Fiscal 2025 guidance was revised: net sales now expected at $12.0–$12.2 billion, diluted EPS at $1.49–$1.59, and organic net sales growth narrowed to 2%–3%.
Valuation Changes
Summary of Valuation Changes for Hormel Foods
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $32.44 to $33.00.
- The Future P/E for Hormel Foods remained effectively unchanged, moving only marginally from 21.04x to 21.30x.
- The Consensus Revenue Growth forecasts for Hormel Foods remained effectively unchanged, at 2.6% per annum.
Disclaimer
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