Morgan Stanley Maintains EW Rating On Smithfield Foods

Morgan Stanley is maintaining its Equal-weight rating on shares of Smithfield Foods, Inc.

after the USDA released its Quarterly Hogs and Pigs report. “While the report was likely bullish for lean hog prices, we believe that grain prices, which continue to rise, will pressure hog production margins when Smithfield's protective hedges roll off in F12,” Morgan Stanley writes. “Furthermore, we continue to believe that pork margins are unsustainably high, leaving substantial downside and limited upside in pork processing.” Smithfield Foods currently trades at $20.87.