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

J.P. Morgan is out with its report today on Sanderson Farms

, 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.