Jefferies Maintains Buy on Sanderson Farms

Jefferies is out with its report today on Sanderson Farms

, 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.