Smithfield Foods slips after BofA cuts to 'neutral'
SFD•Smithfield Foods shares fell 2% after BofA downgraded the stock to neutral from buy and cut its price target to $21 from $25. BofA cited weaker pork demand and lower lean-hog futures, while feed costs remain elevated.
1. BofA downgrades stock
BofA said the pork backdrop has worsened, citing weak belly and ham demand and lower lean-hog futures that reduce expected hog profits against still-elevated feed costs. It described the packaged meats segment as stable and said a recovery in pork or meaningful packaged meats profit growth would make it more constructive.
