Market Overview

Credit Suisse Weighs In On Tyson's Bidding War

Related TSN
Markets Little Changed Ahead Of Friday's Jobs Report
Mixed Economic Data, Ebola Scares Rattle Markets
Some Firms Will Benefit from Falling Corn Prices (Fox Business)

In a note dated June 9, Credit Suisse asked, "Bidding war! What is it good for?" and answered with a Tyson Foods (NYSE: TSN) downgrade from Neutral to Underperform. Additionally, the firm has lowered its price target from $40 to $35.

The analysts at Credit Suisse wrote, "We believe Tyson stock will be dead money at best for the next 12 months as it copes with the hangover of paying such a big price."

They added that the Hillshire acquisition represents a 70 percent premium and may lead Tyson to issue $1.6 billion in new equity.

Looking into the long-term future, the team at Credit Suisse said they see how the deal could create value for investors if they have a seven, 10 or 20-year investment horizon.

Tyson shares are down another three percent in Tuesday's pre-market, following a 6.53 percent drop Monday and are trading just above the $37 mark.

Latest Ratings for TSN

DateFirmActionFromTo
Oct 2014JP MorganReinstatesOverweight
Oct 2014Credit SuisseUpgradesUnderperformNeutral
Sep 2014Goldman SachsReinstatesBuy

View More Analyst Ratings for TSN
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color News Downgrades Price Target Analyst Ratings

 

Related Articles (TSN)

Around the Web, We're Loving...

Get Benzinga's Newsletters