Hormel Foods downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Thomas Palmer downgraded Hormel Foods to Underweight from Neutral with a price target of $38, down from $47. The company’s 6% guidance cut does not fully de-risk earnings, the analyst tells investors in a research note. Despite emerging demand headwinds lingering supply chain issues, Hormel implicitly left its second half of 2023 outlook little changed, which factors in a favorable commodity environment and a sharp uptick in volumes, says the firm. In addition, the analyst says Hormel’s valuation remains elevated versus peers even though its earnings have consistently disappointed over the past several years.