Hormel Foods rises after BofA upgrades on improving business, cost cuts

Brokerage BofA Global Research upgrades Skippy peanut butter maker Hormel Foods HRL.N to "neutral" from "underperform", raises PT to $35 from $29

New PT a 12.7% upside to the stock's last close

Shares of HRL rise 1.5% to $31 premarket

Brokerage says HRL's Jennie-O Turkey business is expected to improve after a decade of challenges, with industry production declining and grain costs decreasing

Brokerage believes co's base business, including pork products, has performed well and is expected to continue to do so, driven by strong protein demand and stable input costs

The company's cost savings program expected to drive an upside to earnings, says BofA

Brokerage flags risks to HRL that include disappointing recovery of the Planters business and uncertainty regarding the plans of new CEO succeeding Jim Snee, who is retiring at the end of 2025.

Two out of 12 brokerages rate the stock "buy" or higher, 8 rate "hold", 2 rate "sell" and their median PT is $32.5 as per LSEG data

As of last close, HRL stock down 2.6% YTD