The firm said it lowered its rating on the meat and food products producer based on a valuation call.
"We are downgrading Hormel to "market perform," as our price target does not provide sufficient upside to justify an "outperform" rating," BMO said.
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The firm raised its price target on Hormel to $58 from $53, and increased its full year 2014 earnings estimate to $2.21 per share from $2.18 per share.
"We continue to believe that Hormel deserves a premium multiple to its peers, as its balanced portfolio growth opportunities and significant market shares in niche categories create a stronger growth profile with lower earnings variability," the firm added.
Shares of Hormel are lower by 0.55% to $54.23 in pre-market trading this morning.
Separately, TheStreet Ratings team rates HORMEL FOODS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate HORMEL FOODS CORP (HRL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."