How Will Tyson Foods (TSN) Stock React To This Analyst Upgrade?

NEW YORK (TheStreet) -- Shares of Tyson Foods Inc  (TSN) are slightly higher, up 0.27% to $36.49 in early market trading after the meat company was upgraded to "buy" from "hold" at BB&T Corporation  (BBT) with a $45 price target.

Analysts at the firm said the change in rating was a valuation call.

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Separately, TheStreet Ratings team rates TYSON FOODS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate TYSON FOODS INC (TSN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • TSN's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 10.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.72% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TSN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • TYSON FOODS INC has improved earnings per share by 5.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TYSON FOODS INC increased its bottom line by earning $2.32 versus $1.68 in the prior year. This year, the market expects an improvement in earnings ($2.80 versus $2.32).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Food Products industry average. The net income increased by 4.4% when compared to the same quarter one year prior, going from $249.00 million to $260.00 million.
  • You can view the full analysis from the report here: TSN Ratings Report
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