Hormel Foods' stock fell over 2% in Thursday's midday trading following a downgrade by JPMorgan, which cited "intensifying" cost pressures. The firm lowered its rating on Hormel from "Overweight" to "Neutral" and reduced its price target from $28 to $23. This new target implies only slightly more than 6% upside from its previous closing price. The downgrade comes as the stock has declined more than 11% over the past month and more than 28% over the past year. Analyst Thomas Palmer noted in a report, "Compared to most of its low-growth large-cap peers, we believe Hormel has a clearer path to earnings growth, and its superior balance sheet justifies the valuation premium on both a P/E and EV multiple basis." However, he added, "That said, we see potential pressure on earnings growth from persistently high pork prices due to supply constraints, rising freight costs, ongoing volume declines partly in response to price increases, and the recent divestiture of the entire turkey business, which could impact fiscal year 2027."