Sanderson Farms Target Raised by BMO

BMO Capital raised its Sanderson Farms price target to $150 from $130 as Q3 EPS beat consensus, while reiterating its market perform rating. According to the broker, the company’s reported FY3Q17 EPS of $5.09 exceeded consensus, as continued strong retail demand, higher volumes, improved export markets and a favorable feed cost environment drove near-record 19% operating margins.

The broker said, notwithstanding cyclical nature of chicken margins, it expects chicken fundamentals to gain momentum from current levels and be stronger for longer.