Things are going pretty well for Tyson Foods Inc., and they are only going to get better, according to Timothy Ramey of Pivotal Research Group in New York City.
The firm recently initiated its coverage of Tyson, issuing a note to investors on Dec. 9 that gave the company a buy rating and a price target of $55.
That’s not too shabby, considering — as noted in Ramey’s assessment — margins are already at historically high levels, input costs are low and will inevitably rise, and the fact that Tyson accumulated a lot of debt during its $8.55 billion acquisition of Hillshire Brands Co.
The acquisition, however, will also be a source of growth for the company, Ramey said. But he gives the lion’s share of the credit for his predicted impending stock price rise to... [ MORE ]