Morningstar - Sanderson Farms Inc. (SAFM) Solid 2Q Results Leave Our Outlook Unchanged for Sanderson; Shares Fairly Valued

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Morningstar

Zain Akbari, CFA

EUR 98.48 For Business Accounts Only

Solid 2Q Results Leave Our Outlook Unchanged for Sanderson; Shares Fairly Valued

After no-moat Sanderson Farms posted on-track second-quarter earnings, we plan a high-single-digit percentage uptick for our $105 per share fair value estimate, reflecting our expectations for fiscal 2019 U.S. corporate tax reform. The firm reported $1.5 billion in sales and a 9.3% operating margin through the first half, on pace to meet our $3.1 billion and 9.5% respective full-year targets. We do not expect to significantly change our 10-year outlook of 4% top-line growth (apart from new plant...

25/05/2017 14 EN

Underlying

Sanderson Farms Inc.

Sanderson Farms is a poultry processing company engaged in the production, processing, marketing and distribution of frozen chicken products, including processed and minimally prepared chicken. The company sells ice-packed, chill-packed, bulk-packed and frozen chicken, in whole, cut-up and boneless form to retailers, distributors, and casual dining operators, and to customers who resell frozen chicken into export markets. The company operates through: Sanderson Farms, Inc. (Production Division), which is engaged in the production of chickens to the broiler stage; and Sanderson Farms, Inc. (Processing Division), which is engaged in the processing, sale and distribution of chicken products.

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US8000131040 NASDAQ Stock Market United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Zain Akbari, CFA

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Solid 2Q Results Leave Our Outlook Unchanged for Sanderson; Shares Fairly Valued

Vermilion Compass: Weekly Equity Strategy

Vermilion Booster Shots: Attractive bottom-fishing stocks

SANDERSON FARMS sees a downgrade to Neutral on account of less fundamental stars

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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