Analyst Note
| Rebecca Scheuneman, CFA |Despite the very challenging operating environment, we were confident that Hormel’s solid management team would navigate the choppy waters competently, and we were not disappointed. But Hormel’s consistent execution is already priced into the shares, which trade at a 35% premium to our valuation after the 4% pop on the report. As we don’t expect a material change to our $37 fair value estimate, we suggest investors remain on the sideline.