Goldman Sachs analyst Leah Jordan maintained a Buy rating on Smithfield Foods (SFD – Research Report) yesterday and set a price target of $32.00.
Leah Jordan’s rating is based on the promising growth trajectory of Smithfield Foods, driven by its leading position in the packaged meats sector. As consumers increasingly prefer high-protein, convenient, and diverse flavor options, Smithfield Foods is well-placed to benefit from these trends. Additionally, a cyclical recovery in hog production, coupled with reduced feed costs, is expected to significantly boost earnings in the near term.
Moreover, Smithfield Foods offers a strong return profile, combining earnings growth with an attractive dividend yield of approximately 5.5%. The company’s robust free cash flow and low leverage further support its financial stability. Leah Jordan also notes the company’s solid market position in the retail channel, with opportunities for distribution growth, particularly in its higher-margin brands. Given these factors, the target price of $32 reflects an anticipated 50% upside, based on various valuation scenarios.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SFD in relation to earlier this year.
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