J.P. Morgan Cuts Sanderson Farms Price Target (SAFM)

J.P. Morgan cut its price target on shares of Sanderson Farms SAFM to $51 from $65 today. J.P. Morgan maintained its Overweight rating on the stock. Sanderson Farms reported 3Q10 (July) EPS yesterday and missed the Bloomberg consensus estimate by $0.32. Investors appeared to favor the fact that the company began shipping eggs to Russia, however. J.P. Morgan analysts "remain positive overall and even after the relief rally see the stock as undervalued; however, [analysts] lower the FY11 estimate and target price to reflect higher corn costs." Further, "Despite [analysts'] heightened optimism about the current quarter, [J.P. Morgan] is less bullish about next year than when [the bank] last wrote on SAFM, which was prior to corn's big rise." Sanderson Farms, Inc. is a fully integrated poultry processing company engaged in the production and distribution of fresh and frozen chicken products. Shares are down 2.45% Tuesday, to $44.68. Get real-time news and stock alerts by following Benzinga on Twitter!