Deutsche Bank Reports on Sanderson Farms

Deutsche Bank commented on Sanderson Farms SAFM in a report released yesterday. In the report, Deutsche Bank was mixed in its assessment of the company. Deutsche Bank writes, "Chicken fundamentals remain weak, with typical seasonal bump postEaster/ahead of Mother's Day not occuring. Mgmt attributes the weakness to oversupply & weak foodservice trends, further hurt by high gas prices, and does not expect much recovery into June. This is a disappointment to the industry, given the high price of competing meats. July is still uncertain, but if prices don't bounce from here, mgmt expects to see deeper cuts (than the 1-2% drop seen over the past two weeks) post July 4th." Deutsche Bank currently has a Hold rating on Sanderson Farms and a price target of $38. Shares of Sanderson Farms closed at $45.13 on Tuesday, down from $46.93 at the opening bell.