Pilgrim’s Pride downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Pilgrim’s Pride to Market Perform from Outperform with an unchanged price target of $46. The company is benefiting from a strong margin environment across its portfolio but the market better appreciates Pilgrim’s outlook as the shares have nearly doubled last 12 months and are within 5% of the price target, the analyst tells investors in a research note. The firm says its longer-term view remains unchanged as it continues to believe Pilgrim’s strategy creates pathway for improved earnings over time and limits U.S. chicken margin volatility. However, the “case for aggressively investing is less persuasive at current levels,” adds BMO.