Market Overview

UPDATE: DA Davidson Downgrades Tyson Foods to Neutral on Production Outlook

Share:
Related TSN
Organic Food Goes Mainstream
UPDATE: Tyson Reduces Beef Production Capacity Due to Lack of Available Cattle

DA Davidson reduced its rating on Tyson Foods (NYSE: TSN) from Buy to Neutral and lowered its price target from $24 to $15.

DA Davidson said, "Higher corn prices are obvious and not new news. Our biggest concern: a relatively sanguine outlook for production – Tyson cut chicken 6%-8% about a year ago and today said it doesn't see the need to cut production further. In 2008 Donnie Smith famously declared “I'm done cutting; let the other guys come get some.” That didn't work out well. As a category leader, the most “leader-like” behavior would be to lead with more cuts – without production cuts in FY13 the industry will likely have too much protein and chicken margins may go negative."

Tyson Foods closed at $15.40 on Friday.

Latest Ratings for TSN

DateFirmActionFromTo
Aug 2015BMO CapitalMaintainsOutperform
Feb 2015Cleveland ResearchUpgradesNeutralBuy
Dec 2014Pivotal ResearchInitiates Coverage onBuy

View More Analyst Ratings for TSN
View the Latest Analyst Ratings

Posted-In: DA DavidsonAnalyst Color Downgrades Intraday Update Analyst Ratings

 

Related Articles (TSN)

View Comments and Join the Discussion!

Get Benzinga's Newsletters