Jefferies Reaffirms Their Sell Rating on Sanderson Farms (SAFM)


In a report released today, Akshay Jagdale from Jefferies maintained a Sell rating on Sanderson Farms (NASDAQ: SAFM), with a price target of $77. The company’s shares opened today at $104.13, close to its 52-week low of $95.97.

Jagdale said:

“3Q EPS missed our & consensus estimates by ~39% & 61% resp. The lower- than-expected results were mainly driven by lower chicken commodity prices & higher production costs. The weak 3Q results & even weaker YTD 4Q trends validate our concerns of an oversupply of chicken in the US. We are surprised by the stock’s outperformance in recent months and attribute it to an anticipated increase in chicken promotions in the QSR channel, which we view as speculative.”

According to TipRanks.com, Jagdale is a 4-star analyst with an average return of 4.3% and a 52.6% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Lamb Weston Holdings, McCormick & Company, and J & J Snack Foods.

The word on The Street in general, suggests a Hold analyst consensus rating for Sanderson Farms with a $97.38 average price target.

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The company has a one-year high of $176.43 and a one-year low of $95.97. Currently, Sanderson Farms has an average volume of 521.2K.

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Sanderson Farms, Inc. is a poultry processing company that engages in the production, processing, marketing and distribution of fresh, frozen, further processed and partially cooked chicken products. It operates through three divisions: Production, Processing, and Foods. The Production division refers to the production of chickens to the broiler stage.

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