UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Hormel Foods Corporation

In a report published Wednesday, BMO Capital Markets reiterated its Market Perform rating on Hormel Foods Corporation

, and slightly raised its price target from $31.00 to $32.00. BMO Capital noted, “HRL continues to leverage its balanced portfolio to generate above-industry growth across a range of economic/commodity environments with its diverse business divisions, focus on value-added products, and strong financial position. Notably, HRL has structurally improved its turkey operation, as evidenced by its confidence in providing clarity on its normalized margin in a higher feed environment. We are also encouraged that HRL has begun to address industry challenges by reducing turkey and pork harvest levels by 1%-2%. That said, HRL's EPS growth rate appears to be decelerating below its long-term targets for the second consecutive year, reflecting a sharp increase in feed costs, higher meat input costs, and turkey oversupply.” Hormel Foods Corporation closed on Tuesday at $30.05.