Bank of America Securities analyst Peter Galbo reiterated a Buy rating on Smithfield Foods (SFD – Research Report) yesterday and set a price target of $28.00.
Peter Galbo has given his Buy rating due to a combination of factors that highlight Smithfield Foods’ strong financial performance and promising outlook. The company reported its first quarter as a public entity with results slightly surpassing expectations, showcasing an adjusted operating profit of $315 million, which exceeded Bank of America’s forecast. This performance was driven by sales and profit growth across all segments, except for a minor shortfall in Hog Production profits.
Looking ahead, Smithfield Foods has provided a financial outlook for FY25, projecting an adjusted operating profit between $1.1 billion and $1.3 billion, aligning with initial models. The company is expected to benefit from favorable pork cycle dynamics, cost optimization, and profitability improvements through product mix and innovation. Despite some stock weakness, the FY25 outlook suggests conservatism, particularly in hog production, reinforcing confidence in Smithfield’s ability to meet its targets. Consequently, the Buy rating is reiterated with a price objective of $28.
According to TipRanks, Galbo is a 2-star analyst with an average return of 0.6% and a 46.90% success rate. Galbo covers the Consumer Defensive sector, focusing on stocks such as General Mills, The Hershey Company, and McCormick & Company.
In another report released today, Barclays also maintained a Buy rating on the stock with a $28.00 price target.