Deutsche Bank Downgrades Tyson Foods (TSN) to Hold

Deutsche Bank downgrades Tyson Foods (NYSE: TSN) from Buy to Hold.

Deutsche analyst says, "We are downgrading Tyson to a HOLD as the recovery in the chicken industry appears to be moderating, ahead of a seasonally weak period. While industry players should remain disciplined relative to the past, incremental supply/weight prompted by lower feed costs + softening foodservice demand at the margin point to lower prices."

"Last week, we attended the National Chicken Council's Chicken Marketing Seminar. Our overall takeaway is that chicken pricing is set to weaken in the near-term, potentially over and above normal seasonal trends. Demand appears to have weakened at the margin, while lower feed costs look to be encouraging higher weights...We are making no changes to our near-term estimates, but reducing our price target to $14 from $15 and downgrading our recommendation to HOLD."

To see more analyst ratings on TSN Click Here.

Tyson Foods, Inc., together with its subsidiaries, engages in the production, distribution, and marketing of chicken, beef, pork, prepared foods, and related allied products worldwide.

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