UPDATE: BB&T Capital Markets Upgrades Smithfield Foods to Buy on 2013 Outlook
BB&T Capital Markets raised its rating on Smithfield Foods (NYSE: SFD) from Hold to Buy and established a $28 price target.
BB&T Capital Markets noted, "Although our Q2 expectations are more muted than consensus, we find the risk/reward profile for the SFD shares attractive. There is some modest downside risk , as we believe Q2 earnings could fall short of expectations Thursday. Indeed, it is unusual to upgrade a stock into what is likely to be a disappointing quarter. However, we view downside risk in the shares as relatively limited given the fact that C'13/14 prospects for hog/pork producers have improved considerably and the related upside should dwarf concerns on the quarter."
Smithfield Foods closed at $22.23 on Monday.
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