Jefferies analyst Akshay Jagdale assigned a Sell rating to Sanderson Farms (NASDAQ: SAFM) today and set a price target of $77. The company’s shares opened today at $102.97, close to its 52-week low of $101.20.
Jagdale wrote:
“2Q EPS missed our & consensus estimates by ~7% & ~17%, respectively. Results imply weak domestic demand & more recent pricing trends point to further deterioration in demand. Despite mgmt lowering its production targets for 2H (a rare move on mgmt’s part which will likely be viewed positively by investors) & the company’s expectation that industry production growth will be benign, softer demand & rising feed costs keep us cautious on the NT outlook. Back half production estimates lowered, which seems to be in focus. Mgmt is seemingly responding to the weaker demand environment by lowering its production targets in 2H18 (a fairly unprecedented move for the company).”
According to TipRanks.com, Jagdale is a 4-star analyst with an average return of 4.5% and a 51.9% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Lamb Weston Holdings, McCormick & Company, and J & J Snack Foods.
Sanderson Farms has an analyst consensus of Hold, with a price target consensus of $109.
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The company has a one-year high of $176.43 and a one-year low of $101.20. Currently, Sanderson Farms has an average volume of 428.9K.
Based on the recent corporate insider activity of 156 insiders, corporate insider sentiment is negative on the stock.
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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.
