JP Morgan Provides Color on Protein Sector

JP Morgan provided color on the protein sector. In a research report published today, the rating agency stressed it believes Smithfield SFD has the best chance to beat Q2 expectations. In the report, JP Morgan States, “We think that the company most likely to beat the Street over the next 3-4 quarters is Smithfield. For Tyson, we think the long-term risk/reward is attractive but believe that 3Q and maybe 4Q will disappoint. Sanderson Farms is a bit trickier. We are Underweight because we believe the Street is over-estimating SAFM's normalized margins. In the near term, though, given improving industry fundamentals and SAFM's high level of short interest, we would not be overly pessimistic on the name.” On Tuesday, SFD lost 3.72% of its value to end the day at $20.99.