J.P. Morgan Raises SFD Estimates

J.P. Morgan is raising its estimates on Smithfield Foods, Inc.

as follows: FY11 (April) to $2.79 from $2.66 and FY12 to $2.35 from $1.82. “Smithfield Foods buys a great deal of corn but is hedged at ~$4 through April,” J.P. Morgan writes. “And pork margins remain very high versus historical averages. Hog prices have been excellent and should be strong throughout the year. Toward the end of this calendar year, our estimates may be at greater jeopardy, but until then we see SFD as the least risky protein stock we cover.” Smithfield Foods closed on Wednesday at $20.22.