UPDATE: BMO Capital Markets Upgrades Smithfield Foods to Outperform on Pork Demand Outlook
BMO Capital Markets raised its rating on Smithfield Foods (NYSE: SFD) from Market Perform to Outperform and increased its price target from $26 to $28.
BMO Capital Markets commented, "We are upgrading SFD to Outperform from Market Perform as the recovery in pork margins, hedges, a rebound in hog margins to within SFD's normal range by the summer, and share repurchases should create upside to expectations beginning in FY4Q13 continuing through FY2014. … Notably, the futures curve implies hog production margins of $10/head in May, which is within SFD's normalized range. Importantly, SFD's internal efforts – share repurchase, hedges, strong balance sheet, and focus on packaged meats – create earnings stability that has eluded SFD for more than a decade."
Smithfield Foods closed at $21.57 on Monday.
Latest Ratings for SFD
|Jun 2013||DA Davidson||Downgrades||Buy||Neutral|
|May 2013||BMO Capital||Downgrades||Outperform||Market Perform|
|May 2013||Stephens & Co.||Downgrades||Overweight||Equalweight|
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