JPMorgan Upgrades Tyson Foods to Overweight, Cuts Price Target to $63

According to CNBC, JPMorgan upgraded Tyson Foods to overweight from neutral and lowered its price target on the chicken and beef processor's shares to $63 from $65, which still implies nearly 21% upside from Thursday's close. Analyst Thomas Palmer said emerging chicken headwinds tied mainly to higher feed costs are widely understood and could be partly offset by industry production cuts, while beef earnings could improve from historically depressed levels as tailwinds build. He also said Tyson is set to benefit from a reduced operational footprint, the gradual resumption of cattle imports from Mexico and increased domestic cattle supply, and added that TSN's U.S. retail volume is growing. Shares of Tyson have fallen nearly 11% year to date, and the stock rose more than 1% in premarket trading after the upgrade.