Goldman Sachs Maintains Neutral Rating On Hormel Foods

According to Goldman Sachs, Hormel Foods HRL reported 2Q11 EPS of $0.40 versus GS and consensus at $0.39 and $0.40, respectively. Goldman Sachs said that the upside was driven by modestly better performance in Jennie-O Turkey Store and its international business. “HRL again raised its FY11 guidance to $1.67-$1.73 from $1.62-$1.68. HRL was down nearly 5% (vs. S&P 500 +0.32%) post the release on investor concern over margin sustainability and the ability to push price increases, bringing shares closer to our $27 EV/EBITDA-based 12-month price target.” Hormel Foods closed yesterday at $28.59.