SFM - Sanderson Farms trades above Continental Grain deal for second day in a row
Sanderson Farms (NASDAQ:SAFM) continued to trade through the $203/share planned sale to Continental Grain/Cargill amid a bullish note from Barclays on Tuesday that sees potential upside in a deal break. "We continue to see very strong cash generation ahead and if the takeover by Cargill & Continental Grain were to fall through, we could see upside for SAFM from current levels," Barclays analyst Benjamin Theurer, who has an equalweight rating, wrote in a note on Tuesday. SAFM gained 2.5% amid the Barclays note on Tuesday and the shares ticked down 0.6% on Wednesday, though the stock continues to trade at a 1.6% premium to the $203/sale price. Investors have been concerned that the Sanderson Farms sale may be blocked by the U.S. Justice Department, though the stock price indicates that they are not overly worried about a potential deal termination. CNBC's David Faber in early March reported the sale would likely be blocked unless some changes
For further details see:
Sanderson Farms trades above Continental Grain deal for second day in a row