BB&T Reiterates Hold Rating on Sanderson Farms (SAFM)

BB&T Capital markets is out with a research report this morning, where it reiterates its Hold rating on Sanderson Farms (NASDAQ: SAFM); it did not provide a price target for the stock.

The BB&T analysts cited the company's recent quarterly earnings results, which beat the Street consensus, due to higher pounds sold, lower-than-expected feed and SG&A costs, offset somewhat by lower pricing.

The analysts noted that management does not expect a dramatically improved demand environment in 2011—retail demand may be bolstered by higher feature activity.

However, in contrast with its larger peers, SAFM continues to be cautious on the outlook for foodservice based upon high unemployment, as well as the fact that it has not seen any pick-up in foodservice demand to date.