David Stahl
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Firmer Chicken Pricing Encourages CLSA To Upgrade Sanderson Farms To Buy

CLSA has upgraded Sanderson Farms, Inc.  to Buy from Outperform, as it gains confidence that the company can sustain its margins in FY17.

"The outlook for chicken margins has improved and the trough in 2017, if we can still call it that, now has a strong safety net," analyst Jeremy Scott wrote in a note.

While not completely out of the woods, Scott said ideal weather and soil moisture conditions are driving corn and soymeal prices lower and providing a stronger safety net for margins in 2016 and 2017.