KeyBanc Downgrades Sanderson Farms (SAFM) to Hold

June 18, 2013 7:46 AM EDT
Get Alerts SAFM Hot Sheet
Price: $93.66 +0.28%

Rating Summary:
    5 Buy, 5 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 20 | New: 54
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KeyBanc downgraded Sanderson Farms (NASDAQ: SAFM) from Buy to Hold. Analyst Akshay S. Jagdale expressed concerns about valuation.

"Despite our incrementally positive view on chicken, we are downgrading SAFM from a BUY to a HOLD rating owing to our belief that valuation is full at current levels (the stock is almost at our prior price target). Specifically, protein companies have traded between 12-17x our normal earnings estimates at the peak of the cycle over the last nine years and between 12-14x over the last seven years compared to SAFM’s current valuation of 13.8x our normal estimates," said Jagdale.

For an analyst ratings summary and ratings history on Sanderson Farms (NASDAQ: SAFM) click here. For more ratings news on Sanderson Farms click here.

Shares of Sanderson Farms closed at $68.85 yesterday.

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