Smithfield hits 19-month low as pressure mounts
The recent spike in grain prices continues to pressure shares of meat companies like Smithfield (SFD), and the pork processor is at a 19-month low today as Stephens downgrades the company to equal-weight and cuts its price target 25% to $18.
"The rally in grain prices due to drought conditions will likely continue to weigh on the stock given lackluster protein demand has pressured the company's ability to implement higher pricing."
Stephens cuts EPS views for the next 2 years and "negative fundamentals surrounding the entire protein complex will limit appreciation in SFD shares from current levels."
They're down 1.7% at $17.89 and have slumped 17% this month.
(END) Dow Jones Newswires
July 17, 2012 14:22 ET (18:22 GMT)
DJ MARKET TALK: Smithfield at 19-Month Low as Pressures Continue->copyright