Jefferies Maintains Buy on Sanderson Farms

Jefferies is out with its report today on Sanderson Farms SAFM, maintaining Buy. In a note to clients, Jefferies writes, "We've modeled an F2Q EPS loss of $0.57 (Street at $0.84 loss) and we're sticking with our thesis that F1Q11 represented the margin trough point. We continue to think that chicken prices will slowly improve in 2H11 and we would be buyers of SAFM shares ahead of improved pricing inflection point." Jefferies maintains a $55 PT on SAFM. Shares of SAFM closed Friday at $47.27, down 0.06% from Thursday's close.