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Pro Analysis

Tyson Foods to rally 20% due to its prepared foods business, Barclays says

A package of Tyson Foods Inc. chicken is arranged for a photograph in Tiskilwa, Illinois.
Daniel Acker | Bloomberg | Getty Images
A package of Tyson Foods Inc. chicken is arranged for a photograph in Tiskilwa, Illinois.

Investors should buy Tyson Foods because a company transformation will lead to stronger earnings than expected in coming years, according to Barclays, which initiated coverage on the food company with an overweight rating.

"We see Tyson as a leading company in the meat industry, with geographical and product diversification. Moreover, we see as positive the company's plans to grow its prepared foods division and become a broader food service company," analyst Benjamin Theurer wrote in a note to clients Tuesday.