BB&T Positive On Andersons (ANDE)

BB&T Capital Markets is positive on The Andersons, Inc. ANDE after this morning's USDA crop report. In the report, BB&T writes, "We have admittedly become more concerned on cost inflation and the derivative effects of this on our space as of late. That being said, the packaged foods names that we follow are covered favorably and at length on their input costs while a majority of the protein names have feed coverage and/or will benefit from matching average costs to revenue in FY'11. We believe SAFM remains unhedged and thus, carries downside risk at the current time. In our opinion, ANDE and CPO offer the greatest risk/reward profile and we believe that CPO offers the least amount of volatility for the full year. Of the packaged food names, we continue to prefer RAH due to its largely hedged profile, inflationary food environment coupled with potential tradedown, higher expected accretion from AIPC, and strong cash flow and favorable valuation." Shares of ANDE are up 67 cents to $39.55 today.