Thursday, December 16, 2010

Tyson (NYSE:TSN) Should Focus on Cost Management

Tyson Foods (NYSE:TSN) has some upside potential because they haven't participated in the higher chicken and pork levels, but instead went the other direction.

Even so, Tyson has a need to zero in on managing cost going forward, and that would position them stronger in a pricing environment which appears to be leveling off.

After cost initiatives, Tyson sees the company saving about $200 million.

Jefferies (NYSE:JEF), which initiated coverage on Tyson today, has EPS/revenue estimates for full year 2011 and full year 2012 of $1.98/$30.3 billion and $2.07/$31.5 billion.

Jefferies started Tyson off with a "Buy" rating. They were trading at $17.39, up $0.44, or 2.60 percent, as of 2:24 PM EST. Jefferies has a price target of $22 on them.

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