Market Overview

UPDATE: Bank of America Downgrades Tyson Foods & Smithfield Foods

Related TSN
Stocks Hitting 52-Week Highs
Mid-Afternoon Market Update: US Stocks Down; GameStop Shares Dip On Weak Results
Starbucks Among 4 IBD 50 Portfolio Stock-ing Stuffers (Investor's Business Daily)
Related SFD
Government Shutdown Takes A Bite Out of U.S. Food Production, Safety and Pricing Data
UPDATE: BMO Capital Markets Terminates Coverage on Smithfield Foods Following Acquisition by Shuanghui International

According to a research report released Thursday, Bank of America has downgraded Tyson Foods (NYSE: TSN) and Smithfield Foods (NYSE: SFD) from Buy to Underperform.

Bank of America commented in the report, "We are downgrading Tyson and Smithfield from Buy to Underperform due to lower estimates as a result of margin weakness from soft demand, a moderating outlook for domestic and emerging market economic growth, a strengthening US dollar which could weigh on exports, and rising corn and soybean meal prices. While the stocks have already had significant downward moves (both down ~10% over last 2 weeks), we believe there could be further downside risk, and at the very least will underperform our coverage group until we get more stable protein demand and clarity around the corn crop which will not likely happen near term."

Bank of America lowered the PO on Tyson Foods from $22 to $16 and decreased the PO Smithfield Foods from $24 to $19. Tyson Foods closed yesterday at $17.06, while Smithfield Foods closed at $19.54.

Latest Ratings for TSN

Nov 2015Credit SuisseMaintainsNeutral
Oct 2015JP MorganDowngradesOverweightNeutral
Aug 2015BMO CapitalMaintainsOutperform

View More Analyst Ratings for TSN
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Downgrades Price Target Analyst Ratings


Related Articles (SFD + TSN)

Get Benzinga's Newsletters