UPDATE: DA Davidson Raises PT on Hormel Foods Following Consistent Growth

In a report published on Thursday, DA Davidson raised its Price Target on Hormel Foods (NYSE: HRL) from $38 to $42.DA Davidson also maintained its neutral rating on the company.

In the report, analysts from DA Davidson commented that "HRL remains at a premium valuation, trading above even its packaged-food peers. The execution remains very good. While we are concerned about the valuation gap to its peers and other packaged foods equities, we acknowledge the strong consistent growth Hormel has delivered. We remain NEUTRAL rated on the shares, and are increasing our target to $42, previously $38, which is 20.5x our 2014 estimate."

Hormel Foods is down 0.83 points on the day and trades at $41.57