Smithfield Foods’ Strong Q1 Performance and Positive Outlook Justify Buy Rating

Smithfield Foods (SFD – Research Report), the Consumer Goods sector company, was revisited by a Wall Street analyst today. Analyst Megan Alexander from Morgan Stanley maintained a Buy rating on the stock and has a $28.00 price target.

Megan Alexander’s rating is based on Smithfield Foods’ strong first-quarter earnings performance, which exceeded expectations across all segments. The company reported a significant earnings per share (EPS) beat, with a 24% increase over the consensus, driven by higher-than-expected operating profits in packaged meats, fresh pork, and hog production.
Additionally, the reaffirmation of Smithfield Foods’ fiscal year 2025 guidance, despite potential challenges such as China tariffs, indicates a conservative yet positive outlook. The company’s low valuation, combined with a 5% dividend yield, suggests further upside potential for investors, supporting the Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $28.00 price target.