Credit Suisse Weighs In On Tyson's Bidding War
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
|Jan 2016||RBC Capital||Downgrades||Outperform||Sector Perform|
|Dec 2015||Jefferies||Initiates Coverage on||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.