Dougherty & Co Downgrades Tyson (TSN) to Neutral
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Price: $25.65 +0.35%
Rating Summary:
12 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Rating Summary:
12 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Trade TSN Now!
Dougherty & Co downgraded Tyson (NYSE: TSN) from Buy to Neutral with a price target of $15.00 (from $24.00) following third quarter results and guidance.
Commenting on the rating move, analyst Timothy S. Ramey states: "Higher corn prices are obvious and not new news. Our biggest concern: a relatively sanguine outlook for production – Tyson cut chicken 6%-8% about a year ago and today said it doesn't see the need to cut production further. In 2008 Donnie Smith famously declared "I'm done cutting; let the other guys come get some." That didn’t work out well. As a category leader, the most "leader-like" behavior would be to lead with more cuts – without production cuts in FY13 the industry will likely have too much protein and chicken margins may go negative."
The firm cut FY13 EPS estimate to $1.55, versus $2.55.
For an analyst ratings summary and ratings history on Tyson click here. For more ratings news on Tyson click here.
Shares of Tyson closed at $15.40 yesterday, with a 52 week range of $14.62-$21.06.
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Commenting on the rating move, analyst Timothy S. Ramey states: "Higher corn prices are obvious and not new news. Our biggest concern: a relatively sanguine outlook for production – Tyson cut chicken 6%-8% about a year ago and today said it doesn't see the need to cut production further. In 2008 Donnie Smith famously declared "I'm done cutting; let the other guys come get some." That didn’t work out well. As a category leader, the most "leader-like" behavior would be to lead with more cuts – without production cuts in FY13 the industry will likely have too much protein and chicken margins may go negative."
The firm cut FY13 EPS estimate to $1.55, versus $2.55.
For an analyst ratings summary and ratings history on Tyson click here. For more ratings news on Tyson click here.
Shares of Tyson closed at $15.40 yesterday, with a 52 week range of $14.62-$21.06.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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