UPDATE: J.P. Morgan Upgrades Sanderson Farms to Neutral

J.P. Morgan is out with its report today on Sanderson Farms SAFM, upgrading SAFM to Neutral from Overweight. In its report, J.P. Morgan writes, "We are upgrading SAFM shares to Neutral from Underweight, as the stock is at our Dec-11 price target of $39. Though we continue to see downside to consensus earnings and think 'normalized' EPS are only between $2 and $3, the risk/reward to the shares now seems balanced to us." J.P. Morgan maintains a $39 PT on SAFM. Shares of SAFM closed Monday at $39.03, down 3.49% from Friday's close.