March 9, 2007

Tyson to discuss new development centre, cost volatility at analyst day
 

The world's largest meat producer, Tyson Foods Inc., which recently unveiled plans for a US$45 million research and development centre, has hosted an analyst day Thursday (March 8).

Stephens Inc analyst Farha Aslam said the company is likely to talk about the new Discovery Centre, where Tyson plans to develop prepared foods for consumers and restaurants, as well as strategic plans for demand creation and price and supply chain changes.

Aslam said the programme should improve Tyson's profitability and earnings consistency while building a stronger organisation.

The efforts have already contributed to early cost savings and productivity improvements, said Aslam.

Concerns remain about volatility in the commodities market, and the company is likely to talk about grain and chicken pricing expectations, along with international beef trade issues, added Aslam.

The analyst reiterated an "Equal Weight" rating and US$19 target price on the stock. Tyson's shares closed at US$17.98 Wednesday on the New York Stock Exchange, slightly below the stock's 52-week high of US$19.20.