Pilgrim's Pride (PPC) PT Raised to $50 at Argus

Argus analyst John Staszak raised the price target on Pilgrim's Pride (NASDAQ: PPC) to $50.00 (from $41.00) while maintaining a Buy rating.

The analyst comments "We are maintaining our BUY rating on Pilgrim’s Pride Corp. (NGS: PPC), with a $50 target price, up from $41. Our rating reflects high demand for chicken at both full service restaurants and fast-food chains due to beef shortages, as well as our expectation of low-single-digit supply increases over the next five years. Pilgrim’s Pride is planning to allocate its strong cash flow to growth initiatives, and we believe it will exceed its capital expenditures guidance. Following supply-chain headwinds early in 2023, we expect margins to improve, benefiting the share price. Our long-term rating is also BUY. We expect chicken sales to exceed those of other proteins (beef, pork and turkey) in both mature (Europe and the U.S.) and emerging markets. In the U.S., we expect health-conscious consumers to favor chicken over beef and pork. In emerging markets, income growth bodes well for chicken consumption, and is likely to result in more rapid volume expansion than in mature markets."

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