Morgan Stanley's Bullish View on Smithfield Foods (SFD) Backed by Hog Market Momentum

Smithfield Foods Inc. (NASDAQ:SFD) is one of the most undervalued and overlooked large-cap stocks. On August 13, Morgan Stanley’s Megan Alexander raised her price target on Smithfield Foods Inc. (NASDAQ:SFD) to $30 from $29 while keeping a Buy rating. She noted that the company delivered strong Q2 results and lifted full-year guidance, though she views management’s assumptions as conservative, particularly in hog production.

Alexander pointed to futures market trends suggesting higher profitability than Smithfield Foods Inc.’s (NASDAQ:SFD) guidance implies. She also highlighted the company’s ability to sustain packaged meats margins despite raw material volatility, underscoring its resilience.

With management’s constructive outlook on hog prices and disciplined execution, Smithfield Foods Inc. (NASDAQ: SFD) offers potential for re-rating closer to its industry peers. Morgan Stanley sees room for earnings growth and valuation upside if momentum continues.

Smithfield Foods Inc. (NASDAQ:SFD) is the world’s largest pork processor and hog producer, supplying packaged meats and fresh pork products. The company operates across the U.S., Europe, and Mexico.

While we acknowledge the potential of SFD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Stocks to Buy and Hold Forever and 12 Overlooked Large-Cap Stocks with Low Multiples.

Disclosure: None. This article is originally published at Insider Monkey.