Hormel Foods price target lowered to $43 from $44 at Piper Sandler

Piper Sandler lowered the firm’s price target on Hormel Foods to $43 from $44 and keeps a Neutral rating on the shares. Hormel overcompensated for supply disruptions, ending Q1 with excess perishable inventory, which will weigh on Q2margins and delay sell-through of inventory produce at lower costs, the analyst tells investors in a research note. The company also faces challenges in the snack nuts category and unfavorable mix shifts there, and will increase brand and promotional spending to regain traction, says the firm.