Hormel Foods Corp. stock fell 4% in Tuesday premarket trading after the company was downgraded to underweight from neutral at J.P. Morgan due to rising hog prices. J.P. Morgan cut its price target to $36 from $40. “Hormel is heavily reliant upon pork as an input for its products (17%+ of total cost of goods sold by our estimate), and we do not think the company will be able to fully offset these cost increases through pricing,” analysts wrote. Hormel products include Black Label Bacon, Real Bacon Toppings and Spam. In addition to hog prices, Jennie-O has lost more than 10% of its distribution thanks to a salmonella-related recall, and prices of Skippy peanut butter will likely come down after J.M. Smucker Co. lowered the price of Jif. Hormel stock is down 5.3% for the year to date while the the S&P 500 index is up 16%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
- Where Should I Retire?: I want to get out of New York state and retire to a rural location with four seasons — where should I go? - July 4, 2020
- The Moneyist: My father, 93, married 4 years ago. He has dementia — my stepmother says she owns everything - July 4, 2020
- Dispatches from a Pandemic: ‘You feel like you’re being social — and responsible’: For July Fourth, these Americans turned their garages into bars - July 4, 2020