UPDATE: J.P. Morgan Lowering Price Target On Smithfield Foods, Inc.

J.P. Morgan Chase & Co. is lowering its price target on shares of Smithfield Foods, Inc.

to $20 from $23, and it has a Neutral rating on shares. In a note to investors, J.P. Morgan writes, "We are lowering our FY12 EPS estimate for Smithfield to $1.97 from $2.77 and now have the lowest estimate on the Street, per Bloomberg. We also are reducing our Dec-11 target price to $20 from $23. Since we last wrote on Smithfield, three critical fundamental areas have worsened: 1) corn prices have risen, 2) hog prices have fallen, and 3) fresh pork margins have come off of their highs. If the weather in the Midwest stays wet and unfavorable for corn plantings/yields, we may have to lower our numbers further (and vice-versa)." Shares of SFD lost 28 cents yesterday to close at $20.23, a loss of 1.37%.