UPDATE: BMO Capital Markets Upgrades Hormel Foods on Multiple Positive Factors

In a report published Friday, BMO Capital Markets analyst Kenneth B. Zaslow upgraded the rating on Hormel Foods HRL from Market Perform to Outperform, and raised the price target from $41.00 to $49.00.

In the report, BMO Capital Markets noted, “We are upgrading HRL to Outperform from Market Perform as an extensive list of levers creates material upside to HRL's earnings expectations in F2014. With the surge in input costs and weak fresh pork margins creating an earnings hiccup, HRL's stock has become compelling, reflecting (1) an improvement in turkey margins (lower inputs costs, production cuts); (2) accelerated new product innovation; (3) accretion/international expansion opportunities from Skippy; (4) margin expansion opportunities (i.e., subsiding input costs, mix improvement); and (5) effective future cash deployment.”

Hormel Foods closed on Thursday at $40.61.