Pilgrim's Pride shares drop
The stock price fell to $16.15. Reports have the price sliding down 37 percent for the month. A Credit Suisse analyst has cut the stock from “buy” to “neutral.”
"We are downgrading Pilgrim's Pride ... because our thesis that chicken prices would increase rapidly this summer has been slow to materialize," Moskow wrote in a note to investors and media. "We have a hard time seeing how fundamentals can work for protein producers over the next 12 months given this environment."
Other analysts had reportedly been expecting meat prices to rise as Pilgrim’s and other chicken producers cut supply. Reports also say that corn prices could be worsened by the recent Midwestern floods in corn-growing areas.