Deutsche Bank Has Hold On Smithfield Foods

Deutsche Bank is out with a research report on Smithfield Foods

and it has a Hold rating and a $22 price target on shares. In a note to clients, Deutsche Bank writes, "(1) Global herd size remains controlled,(3) Feed costs are a challenge, but SFD has competitively advantaged position & visibility through FY12 due to corn hedging. However stock looks rangebound due to recent pullback in cash hog prices/hog futures. This may prove temporary owing to herd contraction (at the margin, in the U.S.) and a likely return of Chinese import demand." Shares of SFD are off $1.87 to $20.25 in late Thursday trading.