Goldman Sachs Cautious On Companies With Chicken Exposure (TSN, SAFM)

Goldman Sachs said that it maintains a cautious trading bias on companies with chicken exposure – Tyson TSN and Sanderson Farms, Inc. SAFM – and takes a more constructive view on integrated hog producers – Smithfield Foods, Inc. SFD – into earnings season. “Despite likely in-line quarterly prints, we are braced for choppy trading as we see a wide range of potential management commentary on feed inflation and the meat supply-demand balance driving shares,” Goldman Sachs writes. “We recommend investors be opportunistic in the event earnings results do inspire outsized moves in stocks, with an eye towards the fundamental outlook 2-3 quarters ahead.” Tyson Foods currently trades at $15.36; Sanderson Farms trades at $41.24; and Smithfield Foods trades at $16.71.