Hormel Food's Shares Rally To Three-month High After Analyst Upgrade

Shares of Hormel Foods Corp. climbed 1.4% to a three-month high in morning trade Monday, after the packaged foods company was upgraded at Credit Suisse. Analyst Robert Moskow raised his rating to outperform from, after being at neutral for the last 13 months. He raised his stock price target to $43, which is 9.5% above current levels, from $38. "In an environment where packaged food peers are rationalizing their portfolios and turning almost exclusively to cost-cutting to adjust to slowing consumer demand, Hormel stands out as having a clear path toward volume growth over the next 12 months," Moskow wrote in a note to clients. He said despite sharp declines in pricing for hogs, corn and turkey breasts, there have not been any "material" signs of pricing weakness or supply gluts. Hormel reported last week fiscal third-quarter earnings and revenue that beat expectations. The stock has slipped 0.8% year to date, while the S&P 500 has gained 8.5%.