BB&T Reiterates Buy On Smithfield Foods

Smithfield Foods SFD was reiterated a buy in a report released by BB&T. The bank has also reduced Q1 EPS estimate to $0.49 from $0.57. They believe the quarter may have been impacted by further mark-to-market losses on the company's lean hog contracts. Fresh pork further processed margin assumptions are likely too conservative and if they are as strong as we believe possible, then the company could likely still achieve the prior estimate. Outlook remains solid as August was a very good moth overall for the industry and we believe that the outlook remains favorable as a whole. Smithfield Foods closed yesterday at $16.54