Smithfield Foods Inc: Catching up with SFD

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Smithfield Foods Inc: Catching up with SFD

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Smithfield Foods Inc

Catching up with SFD

Maintain Rating: BUY | PO: 33.00 USD | Price: 26.67 USD

Balanced portfolio keeps SFD well positioned 11 June 2026

We hosted virtual investor meetings with Smithfield Foods (SFD) President and CEO Equity

Shane Smith and CFO Mark Hall. Consistent with previous messaging, discussions

Peter T. Galbo, CFA

focused on the evolution toward a more balanced and less volatile earnings model, Research Analyst

supported by scaled Packaged Meats segment, a streamlined brand portfolio, and BofAS peter.galbo@bofa.com

improved mix across value-added offerings. Management emphasized that both SFD and

Chris Downing

the broader pork industry are structurally better positioned than in prior cycles, with Research Analyst

reduced earnings volatility and more durable profitability. Maintain Buy and $33 PO. BofAS christopher.downing@bofa.com

Raw materials should help 2H, but freight elevated YasmineResearch AnalystDeswandhy

On input costs, management described a constructive pork raw material environment, BofAS yasmine.deswandhy@bofa.com

particularly within packaged meats, where vertical integration provides meaningful

insulation from spot market volatility. Pork fundamentals remain stable into 2H, with no

material deterioration from disease concerns and bellies/hams could be a cost tailwind;

however inflation persists across the P&L, most notably in freight and transportation. Stock Data

Beef and turkey inflation also remain modest headwinds (~20% of packaged meats raw Price 26.67 USD

materials). Importantly, SFD continues to structurally outperform industry spreads Price Objective 33.00 USD