Sanderson Farms (SAFM) is a prime takeover target given the low valuation and attractive company-specific qualities. The combination of rising chicken prices and lower feed costs should provide a strong tailwind that results in significant price appreciation regardless of a takeover.
SAFM is the third largest poultry processor in the U.S. with weekly capacity of 9.375 million chickens. SAFM sells fresh and frozen chicken products to retailers, distributors and casual dining operators in the U.S. as well as to customers who resell into export markets.
SAFM has the wind at its back
The recent positive financial results should continue given rising chicken prices, falling feed costs, increased consumption and a near term, industry-wide capacity...
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