Jefferies Comments On Chicken Woes For Sanderson Farms

According to Jefferies, Sanderson Farms SAFM chicken prices hit YTD highs this week. Jefferies said that chicken industry woes well known by the Street. “Our $55 PT equates to 2X P/BV, a discount to SAFM's mean 3-year P/BV. We believe the discount is warranted given the challenging chicken sector supply/demand backdrop offset by our expectation for improving chicken prices in 2012.” Sanderson Farms closed on Friday at $40.44.