Bank of America Reiterates Underperform and PT of $20 on Smithfield Foods

Bank of America reiterated its Underperform rating on Smithfield Foods SFD. at the same time, Bank of America left its price target on the company's stock unchanged at $20. In a research report published today, Bank of America provided some color on the company's Q1 earnings report, which is due to be published on June 16. In the report, Bank of America states, "We believe a majority of the focus will be on F12 expectations, which we forecast to be a solid year in terms of EPS compared to historical levels, however the profit outlook has recently moderated with fundamentals weakening due to: 1) a significant decline in hog prices; 2) rising corn prices; 3) moderating Fresh Pork margins; and 4) weakening consumer sentiment." On Tuesday, Smithfield closed the day at $19.41.