UPDATE: Jefferies Raises PT on Hormel Foods to $29

Jefferies is out with its report today on Hormel Foods HRL, raising its PT from $28 to $29. In a note to clients, Jefferies writes, "Updating our model following HRL's F2Q earnings release earlier this week. HRL acknowledged margin deceleration over the balance of FY11, and a closer look a the model suggests margins are likely to contract through FY12 as the company laps near-record pork processing margins and very favorable feed contracts for the Jennie-O segment." Jefferies maintains Hold on HRL. Shares of HRL closed Friday at $29.03, up 0.28% from Thursday's close.