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Research Alert: CFRA Keeps Sell Opinion On Shares Of Hormel Foods Corporation
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Research Alert: CFRA Keeps Sell Opinion On Shares Of Hormel Foods Corporation
Sep 2, 2025 6:54 AM

09:20 AM EDT, 09/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $3 to $22, about 14x our FY 26 (Oct.) EPS of $1.58 (down from $1.66; FY 25 cut to $1.44 from $1.53). This multiple represents a steep discount to historical averages of about 23x but is more in line with center-store packaged food peers. Our revised target and estimates reflect disappointing Jul-Q results, in which stronger-than-expected sales failed to translate into earnings growth, primarily due to a sharp rise in commodity costs (pork, beef, and nuts). We expect this headwind to persist through Oct-Q. As anticipated, HRL withdrew its FY 26 operating income target of about $1.44B (vs. our prior $1.22B forecast). The company now plans to transition to a long-term financial algorithm, which we expect to learn more about when it reports Oct-Q results in late November or early December. We maintain our Sell rating, as we expect consensus estimates to be revised lower following this disappointing earnings report.

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