Home / News / Livestock news / Smithfield hits 19-month low as pressure mounts

Smithfield hits 19-month low as pressure mounts

07/17/2012 @ 1:41pm

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.


(kevin.kingsbury@dowjones.com)
(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

CancelPost Comment
MORE FROM DOW JONES NEWSWIRES more +

Soybeans hit 8-month highs as processing… By: 04/15/2014 @ 3:31pm Soybeans jumped to the highest price in more than eight months after an industry report showed the…

Goldman Sachs is Bearish Wheat By: 04/14/2014 @ 10:01am Goldman Sachs (GS) Monday said increases in grains futures from ongoing Ukraine tensions would be…

USDA Report Summary By: 04/09/2014 @ 11:17am The following table is provided as a service to Dow Jones Newswires subscribers in conjunction…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Farm markets Rally on Weather, Ukraine