Smithfield Foods initiated with a Buy at Goldman Sachs

Goldman Sachs analyst Leah Jordan initiated coverage of Smithfield Foods (SFD) with a Buy rating and $32 price target The firm sees a “solid growth story” given the company’s “industry-leading” packaged meats portfolio. It expects consumers to shift toward high-protein diets and value-added options for convenience and flavor diversity, and sees an “outsized earnings lift” for Smithfield in the near-term due to a cyclical recovery in hog production with lower feed costs. The company provides a compelling total return profile with earnings growth and a 5.5% dividend yield, the analyst tells investors in a research note.