Hormel Foods (NYSE: HRL) was upgraded by equities research analysts at DA Davidson to a “neutral” rating in a research note issued to investors on Thursday.
The analysts wrote, “Shares remain at a premium valuation, trading above even its packaged-food peers. Yet the execution is, as usual, near flawless.
Our price target goes to $38, previously $25, based on 17.3x our FY14 EPS estimate – well above its protein peers Smithfield Foods (SFD* – BUY – $22.40) and Tyson Foods (TSN* – BUY – $23.38) trading at 6.3x and 9.2x 2014 EPS, respectively.
So while we are concerned about the valuation gap to its protein peers and other packaged foods equities, we acknowledge the strong consistent growth Hormel has delivered. We are upgrading the shares to NEUTRAL, previously Underperform.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Stephens reiterated an “overweight” rating on shares of Hormel Foods in a research note to investors on Tuesday, February 12th.
They now have a $40.00 price target on the stock. Finally, analysts at Credit Agricole upgraded shares of Hormel Foods from an “underperform” rating to an “outperform” rating in a research note to investors on Friday, January 4th. They now have a $37.00 price target on the stock.
Hormel Foods traded up 1.88% on Thursday, hitting $36.80. Hormel Foods has a 1-year low of $27.28 and a 1-year high of $36.72. The stock’s 50-day moving average is currently $34.95. The company has a market cap of $9.701 billion and a price-to-earnings ratio of 19.42.
Hormel Foods last announced its earnings results on Thursday, February 21st. The company reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by $0.01...
Source: Argentine Beef Packers S.A.
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