Deutsche Bank upgraded Hormel Foods (NYSE: HRL) from Hold to Buy with a price target of $66.00 (from $59.00).

Analyst Mario Contreras said, "While we have been concerned around avian flu and potentially moderating pork margins, we are incrementally positive around MuscleMilk cost savings. We also point to long-term positives such as Hormel’s strong track record, commitment to innovation, experienced mgmt team, and potential for accretive M&A. Finally, we view valuation (21x C2016 P/E vs. 22x group average) as attractive vs. a historical 5% premium."

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Shares of Hormel Foods closed at $61.22 yesterday.