UPDATE: Bank of America Reduces PO to $17 on Smithfield Foods on Lower Hog Profitability
Bank of America reiterated its Underperform rating on Smithfield Foods (NYSE: SFD) and reduced its price target from $19 to $17 a share.
Bank of America commented, "Smithfield is expected to report F1Q13 results on Monday, September 4th. We are lowering our F1Q13 EPS estimate from $0.57 to $0.44 primarily due to lower Hog Production profitability. Our F1Q13 Hog Production profit/head forecast is lowered from $15/head to $7/head, as hog prices were lower than expected during the quarter. Hog prices were impacted by weak domestic demand, increasing pork cold storage levels and slowing export demand."
Smithfield Foods closed at $19.10 on Thursday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.