J.P. Morgan Reduces TSN Estimates, Drops PT To $15

J.P. Morgan is reducing its estimates on Tyson Foods, Inc.

as follows: FY11 (September) to $1.44 from $1.73 and FY12 to $1.84 from $1.93. “The risk to TSN from corn is lower than to Sanderson Farms, Inc.

because TSN also has large beef and pork businesses that buy no feed,” J.P. Morgan writes. “Yet our estimates are reduced not only because of chicken/corn but also because we have lowered our expectations for pork and beef packing margins given higher input costs. “Our new Dec-11 target price of $15 implies about 10% downside, though per guidance we anticipate a strong December quarter.” Tyson Foods closed Wednesday at $16.83.