UPDATE: J.P. Morgan Raises PT on Sanderson Farms to $39 (SAFM)

J.P. Morgan is out with its report today on Sanderson Farms SAFM, raising its PT from $34 to $39.

In a note to clients, J.P. Morgan writes, "We reiterate our Underweight rating on SAFM, which lately has outperformed its protein peers. Though we raise our target price to $39 from $34 (~$40 seems to be a psychological floor for value investors) and our FY12E EPS estimate to $1.95 from $1.10 (mainly because corn has fallen but not to the point that it would prevent supply cuts), we think that recent stock strength will fade as earnings continue to disappoint. Investors may have to wait longer than expected for actual EPS to equal the ~$4-$5 embedded in the stock price, even factoring in the recent pullback in corn."

Shares of SAFM closed Tuesday at $46.55, up 0.06% from Monday's close.