Zacks Investment Research downgraded shares of Tyson Foods A (TSN) from OUTPERFORM to NEUTRAL on June 03, 2013, with a target price of $26.00.
We are lowering our recommendation on Tyson Foods from Outperform to Neutral following challenging first-quarter 2013 results. Both sales and earnings missed the Zacks Consensus estimate and declined year over year. Higher feed cost in the Chicken segment coupled with lower sales of red meat and supply demand imbalance in the Pork segment led to downfall in earnings. Moreover, the macroeconomic headwinds and lower income of the U.S. consumers is lowering traffic in the restaurants and thereby, lowering the demand for the company's products. However, Tyson is working on improving its prepared foods, international poultry and value-added poultry businesses by producing high-quality foods in keeping with the changing consumer demand by using innovative and cost effective processes. Further, the growing middle class with its increasing demand for protein is opening up a huge market for the company
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