BB&T Reiterates Buy On Smithfield Foods (SFD)

BB&T Capital Markets is reiterating its Buy rating on Smithfield Foods, Inc. SFD and a $19 price target. In a note to clients, BB&T writes, "We have raised our FY'11 EPS estimate to $1.93 from $1.88, to reflect very favorable feed hedges, solid packer margins, cost savings, and our belief that SFD likely locked in some of its lean hog exposure at attractive prices. We have removed Butterball from our estimate, which was somewhat of an offset. We have also introduced a FY'12 estimate of $1.60, which reflects higher feed costs, moderately lower packer margins, but improved packaged meats margin." Shares of SFD lost 17 cents on Friday to close at $16.75, a loss of 1%.