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Buy Spam-maker on better earnings: Credit Suisse

Cans of Spam, by Hormel, are displayed on a shelf at Cal Mart grocery store in San Francisco.
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Credit Suisse reiterated its outperform rating on Hormel Foods, saying the company will issue a strong earnings forecast for next year.

"Our meeting with Hormel management last week reinforced our positive view on the stock and increased our confidence that Hormel will guide to a stronger fiscal 2017 than the consensus view," Robert Moskow wrote in a note to clients Tuesday.

"In an environment where packaged food peers are rationalizing their portfolios and turning almost exclusively to cost-cutting to adjust to slowing consumer demand, Hormel has increased its investment in advertising and new product launches," he said.