UPDATE: BMO Capital Markets Upgrades Tyson Foods

According to a research report published this morning, BMO Capital Markets has upgraded Tyson Foods TSN from Market Perform to Outperform. In the report, BMO Capital Markets said, "We are upgrading TSN to OUTPERFORM from MARKET PERFORM because we believe the recent overreaction to weak beef/pork margins (i.e., TSN underperformed S&P 500 by 2,300 basis points YTD) has created a compelling entry point. Importantly, we expect industry discipline, lower beef supplies (i.e., higher prices), cattle/hog availability, and rebounding demand to create an inflection point, while TSN's more efficient business model should capitalize on the chicken recovery." BMO Capital Markets maintains its $22 PT on Tyson Foods, which closed yesterday at $17.66.