Hormel Foods slips; JP Morgan downgrades rating to 'neutral', trims PT

Shares of Hormel Foods HRL.N marginally down at $21.57 in premarket trade

J.P. Morgan downgrades stock rating on the Skippy peanut butter maker to "neutral" from "overweight", and trims PT to $23 from $28

Brokerage says HRL faces growing margin pressure that its FY26 outlook does not fully reflect, as higher freight and fuel costs are proving more persistent than expected

"We still see a path to earnings growth, aided by operational improvements and cost savings, but not enough to remain constructive," brokerage says

Eleven analysts rate the stock "hold" on average; median PT is $27, according to data compiled by LSEG

As of last close, Hormel stock down ~9% YTD