BMO Downgrades Tyson Foods; Shares Down Nearly 4%

Investors in Tyson Foods, Inc. TSN sold the issue Monday, likely on the heels of an earlier BMO downgrade to Market Perform.

The firm's Kenneth Zaslow moved his investment recommendation from Outperform previously, and his price target from $78 to $69.

"We continue to believe that TSN deserves a premium multiple to its history, as TSN and its management team have made one of the greatest transformations across our coverage group in terms of structural operational improvements, balance sheet strength, and capital allocation. However, our case for aggressively investing in TSN is less persuasive at current valuations and as expectations continue to build despite a surge in feed costs particularly soybean meal," Zaslow said.

Shares of Tyson traded down 3.7 percent to $60.88 amid the downgrade; Zaslow's reduced price target still suggests potential upside of about 13 percent from where the stock last traded.