NEW YORK (TheStreet) --Shares of Tyson Foods Inc. (TSN) are lower by -1.15% to $37.07 in pre-market trading on Tuesday following a ratings downgrade to "underperform" from "neutral" at Credit Suisse (CS).
The firm said it lowered its rating on the branded foods company as it believes Tyson overpaid for its acquisition of Hillshire Brands (HSH).
Tyson won the bidding war for Hillshire with a cash offering of $8.55 billion.
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Credit Suisse lowered its price target on the stock to $35 from $40.
Separately, TheStreet Ratings team rates TYSON FOODS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate TYSON FOODS INC (TSN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."