NEW YORK ( TheStreet) -- Smithfield Foods ( SFD) has received positive assessments from both stock and credit analysts after the company reported that it swung to a profit in the third quarter.

"We reiterate our overweight rating," writes Stephens analyst Farha Aslam. "Smithfield's shares are well positioned to increase fueled by an earnings recovery, given the hog cycle."

Smithfield said that hog production losses moderated significantly in the third quarter, reflecting a 12% improvement in live hog market prices in the U.S. and a 16% reduction in domestic raising costs.

Aslam adds that Smithfield Foods has almost completed its pork restructuring program and saw about $15 million in savings in the quarter. Stephens has a $24 price target for the Smithfield Foods stock.

Meanwhile, credit research firm CreditSights reiterates its marketweight recommendation on Smithfield's CDS.

CreditSights expects operating losses in the hog production segment to continue to fade and for Smithfield as a whole to be able to continue to generate operating profits in the impending quarters.

For the third quarter, Smithfield Foods posted net income of $37.3 million, or 22 cents a share, a jump from a year-ago loss of $105.7 million, or 74 cents a share. Analysts surveyed by Thomson Reuters expected earnings of 19 cents a share on sales of $3.28 billion.

In Friday morning trading, Smithfield Foods stock is falling 0.8% to $19.10. Its peer company Tyson Foods ( TSN) is inching up 0.3% to $17.80 after Reuters reported that it will restart pork processing and hog slaughtering at one of its facilities. Tyson Foods had suspended pork processing and hog slaughtering at its Logansport, Indiana facility after a fire broke out and damaged part of the facility.

-- Reported by Andrea Tse in New York

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