Did Tyson Foods Deserve a Downgrade?

Tyson Foods tumbled more than three percent on Monday following a downgrade from BMO Capital Markets. BMO downgraded its rating to MARKET PERFORM from MARKET OUTPERFORM. BMO Capital Markets also lowered Tyson Foods' (TSN) - Get Report price target to $69 from $78 a share. According to analysts, the case for aggressively investing in Tyson is less persuasive at the current valuations. BMO acknowledged that the greatest risks to the downgrade are that the corporation continues to exceed expectations and the market increases its valuation of the company reflecting its greater earnings power.

This article was written by a staff member of TheStreet.