Deutsche Bank Cuts Price Target for Smithfield Foods (SFD)

Deutsche Bank cut its price target for Smithfield Foods Inc. SFD from $24 to $21 this morning. It also reduced its fiscal 2011 EPS estimate to $1.72 from $2.06. Deutsche bank is "concerned that the salesforce (incentivized by volume) will need to resort to pricing in order to recover... the 7% drop in volume in pork." While Deutsche Bank maintains a Buy rating on Smithfield, "given a tighter hog supply as the summer progresses," it "will monitor market conditions/ pricing." Smithfield Foods produces and markets a wide variety of fresh meat and packaged meat products both domestically and internationally. Smithfield closed at $16.35 on June 17.