Credit Suisse Upgrading Smithfield Foods

Credit Suisse is out with a research report on Smithfield Foods SFD and it is upgrading shares to Outperform and is raising its price target to $29 from $23. In a note to clients, Credit Suisse writes, "We are raising our Smithfield rating to Outperform from Neutral, and our target price to $29 from $23. We are raising our 2011/2012/2013 EPS estimates to $2.40/$2.75/$3.00 (from $2.20/$2.30/$2.50) respectively. As we published in our "Meat Export" report today, we think the elements are in place for an export-propelled U.S. meat industry driven by 15% pork export growth with Smithfield as the main beneficiary. In the near-term, we see upside to next year's hog futures as the U.S. pork supply struggles to keep pace with double-digit export growth allowing hog prices to hold their current highs. This puts us $2.50/head above the futures curve and $0.25 per share above consensus for F13." Shares of SFD closed at $22.62 yesterday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorUpgradesPrice TargetAnalyst RatingsCredit Suisse
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!