Jefferies Maintains Buy on Sanderson Farms

Jefferies is out with its report today on Sanderson Farms SAFM, maintaining Buy. In its report, Jefferies writes, "SAFM delivered and F3Q operating loss of $1.86, below our $1.25 loss estimate and the Street's $0.93 loss estimate. The shortfall relative to our number driven by higher COGS as % of revenue (108.9% vs. our 104.5%). Stock clearly not for the faint of heart, but as we highlighted in our preview note, SAFM shares historically outperform as industry fundamentals improve from trough levels - which we are seeing in August." Jefferies maintains a $55 PT on SAFM. At the time of positng, shares of SAFM were trading at $41.94, up 3.97% from Wednesday's close.