Stephens Cuts Hormel (HRL) PT to $25, Sees Near-Term Margin Pressure Despite 2026 Improvement

Stephens has lowered its price target for Hormel Foods Corporation (HRL) to $25 from $27, maintaining an Equal Weight rating due to anticipated near-term margin pressure in Q1. This pressure is attributed to a timing gap between pricing adjustments and changes in input costs, although management expects earnings to improve throughout 2026. The firm notes potential easing of input costs from higher hog slaughter levels but also highlights risks from highly pathogenic avian influenza impacting turkey operations.