Pivotal Research Cuts Tyson (TSN) to Sell with Price Target of $40
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Pivotal Research downgraded Tyson (NYSE: TSN) from Hold to Sell with a price target of $40.00 (prior $100.00). Analyst Timothy Ramey pointed out a "convincing" class-action complaint related to broiler price-fixing.
"A powerfully convincing class-action complaint, Maplevale Farms, Inc. v. Koch Foods, Inc. et al was filed in U.S. District Court for the Northern District of Illinois on September 2nd. The complaint alleges that Tyson, together with Koch Foods and multiple other players in the broiler chicken business, systematically colluded to reduce production of broilers since about 2008. The mechanism for collusion is not a shady meeting in a hotel room, as was once done by players in the lysine market. Rather, the complaint alleges supply collusion occurred through non-public data exchange; detailed industry reports compiled on a daily or weekly basis by Agri Stats, Inc., a subsidiary of Eli Lilly and Co., and then sold back to industry participants," said Ramey.
Shares of Tyson closed at $74.38 yesterday.
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