Tyson Foods Reports Trimmed 2Q, BB&T Reiterates Buy Rating

BB&T Capital Markets has published a research report on Tyson Foods, Inc. TSN as a follow up to the company's recent upgrade three weeks ago. In the report, BB&T Capital Markets writes, "When we upgraded TSN shares about three weeks ago, we believed our above-consensus Q2 estimate was too high due to lower-than-expected fresh chicken pricing for the quarter. However, that did not dampen our enthusiasm as we were comfortable with our full-year estimate due to likely upside potential in the second half propelled by pork and, to a lesser extent, beef. Now that the quarter has closed, we have indeed trimmed our Q2 estimate to $0.44 from $0.51 (consensus is $0.43). We have retained our full-year estimate of $2.09 reflecting higher projections in both Q3 and Q4. Our more bullish H2 outlook is largely propelled by pork. Our FY'12 estimate is unchanged at $2.05." BB&T Capital Markets maintains its Buy rating and $23 price target. Tyson Foods closed yesterday at $19.50.