J.P. Morgan Downgrades Sanderson Farms to Underweight (SAFM)

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

, downgrading SAFM from Neutral to Underweight. In a note to clients, J.P. Morgan writes, "We are not fond of putting UW ratings on companies with first-rate operations and management teams, such as SAFM. And at some point, depending on how quickly supply is cut, demand rises, and/or feed costs drop, we believe the stock will be undervalued. Alas, that time is not now, and we think investors with medium-term time horizons may earn better returns elsewhere. Investors with long-term horizons may find SAFM's longer-term risk/reward calculus more attractive." J.P. Morgan maintains its $34 PT on SAFM. Shares of SAFM closed Friday at $42.99, up 1.94% from Thursday's close.