KeyBanc Starts Tyson (TSN) at Overweight

KeyBanc initiated coverage on Tyson (NYSE: TSN) with a Overweight rating and a price target of $70.

Analyst Brett Andress said, "While we acknowledge the NT sentiment overhang that the abrupt CEO change and Georgia Dock headlines create, we believe current levels represent an attractive entry point into a best-in-class diversified protein producer with significant branded momentum, some embedded flexibility/offsets to the current FY17 guide and future M&A optionality (~1.5x levered vs. 3.0x+ following Hillshire). Further, we see solid FCF generation supporting accelerated repurchases (modeling ~$750M in FY17/FY18 vs. $1.9B in FY16). We apply a 14.4x multiple to our below-consensus FY18 $4.85 EPS estimate to arrive at our PT."

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 $56.81 yesterday.

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