NEW YORK (TheStreet) -- Pilgrim's Pride Corp. (PPC) - Get Report stock is gaining 4.12% to $19.33 in mid-morning trading on Friday after it was upgraded to "outperform" from "market perform" at BMO Capital Markets, despite the company's disappointing 2015 third quarter results.

The firm lowered its price target to $23 from $26.

On Wednesday afternoon the food company reported earnings of 58 cents per share on $2.11 billion in revenue for the quarter ended September 27.

Analysts surveyed by Thomson Reuters had estimated earnings of 72 cents per share on $2.21 billion in revenue.

Despite the weak quarter, Pilgrim's Pride strong operations and cost reduction programs are expected to improve future margins, BMO said in an analyst note.

Industry-wide margins in the big bird segment are turning negative, which will lead to a decline in production.

Pilgrim's Pride's operations allow it to continue to work at full capacity with positive margins and benefit from the decline in competition.

The company's "diversified portfolio likely will continue to outperform the market, reflecting PPC's flexibility between small and big bird production, continued investment in prepared foods, and lower commodity leg quarter exposure," analysts added.

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Pilgrim's Pride's stock price target was lowered to $25 from $36 at Stephens, which maintained an "overweight" on the stock.

The firm continues to believe the company's diversified operations will continue to benefit shareholders, despite other setbacks, such as challenging export markets.

Separately, TheStreet Ratings team rates PILGRIM'S PRIDE CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate PILGRIM'S PRIDE CORP (PPC) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: PPC

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