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UPDATE: Bank of America Downgrades Tyson Foods as Production Increases


In a report published Monday, Bank of America analyst Ryan Oksenhendler downgraded the rating on Tyson Foods (NYSE: TSN) from Buy to Neutral, and lowered the price target from $33.00 to $32.00.

In the report, Bank of America noted, “In our view, this is likely to cause industry margins to peak sooner than we expected. Recent supply indicators including pullet placements (9-month supply indicator) and egg sets (10-week indicator) have increased faster than expected, with pullet placements increasing 8% y/y in July, following a 3% increase in June. This will result in a significant increase in production in spring and summer 2014. The industry does not appear to be making its seasonal cuts for fall when demand declines either, as egg sets have increased 5% y/y over the last 2 weeks and averaged 3.5% y/y increase over the last 10 weeks. While chicken producers are expected to benefit from a significant decrease in grain costs following a large US harvest, the increased production will weigh on pricing and limit upside to margins, in our view.”

Tyson Foods closed on Friday at $31.49.

Latest Ratings for TSN

Dec 2020JP MorganDowngradesOverweightNeutral
Dec 2020Piper SandlerUpgradesNeutralOverweight
Aug 2020Credit SuisseDowngradesOutperformNeutral

View More Analyst Ratings for TSN
View the Latest Analyst Ratings


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