Bank Of American Raises PT On TSN To $18

Bank of America, citing the reactivation of a share repurchase plan, has raised its price target on Tyson Foods (NYSE:

) from $17 to $18 and maintains its Underperform rating on the stock. Says Bank of America, in the report, “Tyson Foods announced today that its board of directors has reactivated a share repurchase program for up to 22.5 mil shares. This represents roughly 6% of the 383 mil diluted shares outstanding as of the end of F2Q11. The company plans to begin repurchasing shares in the current F3Q11 (ends June), but will purchase less than 25% of the total authorization during the quarter. The remaining repurchases will be made based on several factors, but the company is not under any obligation to make any repurchases at any specific time or within a certain time frame. Tyson will fund the repurchases with cash on hand, as the company had $794 mil as of the end of F2Q11. The whole program would cost roughly $415 mil assuming an $18.50 share price.” TSN closed at $18.84 yesterday.