UPDATE: JP Morgan Downgrades Tyson Foods to Neutral on Headwinds to Protein Sector
JP Morgan lowered its rating on Tyson Foods (NYSE: TSN) from Overweight to Neutral and reduces its price target from $27 to $20.
JP Morgan noted, "Rain in key growing states (e.g., Iowa) has been sparse at best in recent months, and temperatures have been higher than usual. This has led to significantly worse growing conditions and poorer potential yields than what was expected just a month ago. Chickens and livestock are essentially walking ears of corn (with some soybean meal mixed in), and thus farming margins are highly negatively correlated with the cost of feed."
Tyson Foods closed at $17.09 on Monday.
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