BMO Capital Markets analyst Kenneth Zaslow said he is boosting his expectations for Tyson Foods earnings and sees the stock as a good buy, according to Meatingplace.com. Zaslow says Russia reopening its market to U.S. chicken is just one reason for his improved outlook.
The analyst raised his fiscal 2010 earning per share forecast to $2.04 from $1.90.
In a note to investors, Zaslow pointed out Tyson's beef and pork business is solid and could provide a bridge to a recovery in chicken margins in fiscal 2011. He also noted Tyson continues to make strides in improving its chicken operations and reducing its interest expense as it deleverages its balance sheet.
The prospects that Russia will begin buying chicken legs over the next couple of months, following an agreement announced last week, resolves the leg uncertainty that had been weighing on Tyson shares, which he noted have been trading at about 40 percent less than the historical average.