JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Goldman Sachs initiated coverage on Pilgrim’s Pride (NASDAQ:PPC) with a neutral rating and a $50.00 price target on Monday. The stock, currently trading at a P/E ratio of 8.89x, appears slightly undervalued according to InvestingPro analysis.
The investment bank views Pilgrim’s Pride as well positioned to benefit from continued momentum in chicken fundamentals in the near term. Goldman Sachs cited strong demand due to chicken’s affordability, along with constrained supply and stable feed costs as supporting factors. The company maintains strong financial health with a "GREAT" overall score from InvestingPro, supported by a healthy current ratio of 1.35x.
Goldman Sachs expects a structurally higher margin profile for Pilgrim’s Pride with less volatility over time. This outlook stems from the company’s continued shift toward value-added products, plus diversification across geographies and channels. The company has demonstrated solid performance with a revenue CAGR of 9% over the past five years.
The firm noted that these positive factors appear to be well understood and embedded in FactSet consensus estimates. Goldman Sachs sees a balanced risk/reward profile for the stock following its recent outperformance.
The neutral rating reflects Goldman Sachs’ assessment that Pilgrim’s Pride has reached a full valuation after its recent stock price gains.
In other recent news, Pilgrim’s Pride Corp reported disappointing first-quarter 2025 earnings, falling short of analyst expectations for both earnings per share (EPS) and revenue. The company reported an EPS of $1.31, missing the forecast of $1.36, and revenue of $4.5 billion, slightly below the anticipated $4.53 billion. Despite these misses, Pilgrim’s Pride highlighted a 62% year-over-year increase in Adjusted EBITDA, driven by product innovation and geographic expansion. Meanwhile, Goldman Sachs initiated coverage on Hormel Foods (NYSE:HRL) with a Buy rating, setting a price target of $35. The investment bank expressed optimism about Hormel’s diverse packaged food portfolio and projected an improving earnings trajectory, particularly with the recovery of its Planters business. Goldman Sachs also noted that Hormel’s valuation is attractive compared to its historical averages. These developments provide investors with a snapshot of recent company performances and expectations in the food industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.