UPDATE: J.P. Morgan Raises PT on Sanderson Farms Ahead of Earnings Report

In a report published Wednesday, J.P. Morgan analyst Ken Goldman reiterated a Neutral rating on Sanderson Farms SAFM, and raised the price target from $49.00 to $70.00.

In the report, J.P. Morgan noted, “Prior to tomorrow's scheduled earnings, we are upping our estimates and price target for Sanderson Farms. Between (a) chicken prices at all-time highs and climbing, and (b) our expectation for record earnings next year, we think investors probably should own SAFM here. We remain Neutral because we base our price target off “normalized” EPS and we remain concerned about US corn prices; however, protein stocks often trade more on momentum than valuation, and right now we think momentum is in SAFM's favor.”

Sanderson Farms closed on Tuesday at $65.56.