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NEW YORK: Shares of Sanderson Farms Inc ,the fourth-largest US chicken producer, are poised to fall over the next year, due to high feed costs, weak demand and bulging inventories, Barron's reported on Sunday.
The business newspaper cited one analyst as saying the shares could drop by nearly 25 percent within the next 12 months, from $42 per share to $33 per share, based on the industry's troubles.
Barron's said Sanderson is more vulnerable to the industry's difficulties than rivals such as Tyson Foods Inc and Pilgrim's Pride Corp because it is the largest pure-play chicken processor.
Sanderson is set to report quarterly earnings later this week.
Copyright Reuters, 2011
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