Smithfield Foods returns to U.S. market with Buy ratings from brokerages

Investing.com
02-25

Investing.com -- With Smithfield Foods Inc (NASDAQ:SFD) relisted in U.S. public markets after 12 years, the company get a series of Buy ratings from major brokerages on strong market position, improving cost structure, and potential for multiple expansion.

Bank of America, Morgan Stanley (NYSE:MS), and UBS all initiated coverage with bullish outlooks, noted Smithfield’s leadership in packaged meats and fresh pork, as well as its efforts to optimize hog production and enhance margins.

BofA rated the stock Buy with a $28 price objective, expecting valuation gains as investors appreciate Smithfield’s financial profile relative to peers.

Morgan Stanley initiated at Overweight with a $28 price target, citing the company's ability to generate resilient earnings despite commodity volatility.

UBS also started with a Buy rating and a $26 target, pointing to productivity initiatives and potential dividend payments as catalysts for re-rating.

Smithfield, the largest U.S. fresh pork processor and a key packaged meats player, was taken private by Hong Kong-based WH Group (OTC:WHGLY) in 2013. WH Group remains the majority owner with a 93% stake.

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