General Mills to Snap up Tyson Food’s Pet Treats Business for $1.2B

General Mills (GIS) has set its sights on Tyson Foods’ (TSN) pet food unit as it looks to strengthen its Pet portfolio. The global food company has tabled a $1.2 Read More... The post General Mills to Snap up Tyson Food’s Pet Treats Business for $1.2B appeared first on TipRanks Financial Blog.

General Mills to Snap up Tyson Food’s Pet Treats Business for $1.2B

General Mills () has set its sights on Tyson Foods’ () pet food unit as it looks to strengthen its Pet portfolio. The global food company has tabled a $1.2 billion takeover bid from which it also stands to benefit from a $225 million tax subsidy. The transaction is expected to close in the first quarter of Fiscal 2022.

The investment comes amid strong demand for pet food as more people resort to having pets amid the pandemic. According to CEO Jeff Harmening, the acquisition will add an attractive business to a fast-growing pet platform. The deal will also position the company as a leader in pet food and reshape its portfolio for growth. The acquisition is expected to complement the company’s existing businesses.

Harmening stated, “Today’s announcement reinforces our commitment to using all capital allocation levers – including investment in the business, dividend growth, strategic acquisitions, and share repurchases – to drive top-tier shareholder returns over the long term.”

The acquisition is expected to be accretive to earnings upon completion. Furthermore, the company has confirmed it is acquiring a manufacturing facility in independence Iowa.

The unit that General Mills is acquiring generated more than $240 million in net sales for the fiscal year ended April 3, 2021. ().

Deutsche Bank analyst has reiterated a Buy rating on the stock. The analyst has raised his price target to $65 from $61, implying 2.52% upside potential to current levels.

Consensus among analysts on Wall Street is a Moderate Buy based on 3 Buys and 2 Holds. The average analyst implies 5.05% upside potential to current levels.

GIS scores a 6 out of 10 on the TipRanks’ rating implying its performance is likely to align with market expectations.

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The post General Mills to Snap up Tyson Food’s Pet Treats Business for $1.2B appeared first on TipRanks Financial Blog.

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Oracle Wins Cloud Contract from Dish’s 5G Network Project

Oracle (ORCL) has secured a cloud computing contract with Dish Wireless, the unit of DISH Network (DISH) focused on mobile services. Oracle sells business software and competes for cloud market Read More... The post Oracle Wins Cloud Contract from Dish’s 5G Network Project appeared first on TipRanks Financial Blog.

Oracle Wins Cloud Contract from Dish’s 5G Network Project

Oracle () has secured a cloud computing contract with Dish Wireless, the unit of DISH Network () focused on mobile services. Oracle sells business software and competes for cloud market share with Amazon (), Microsoft (), and Alphabet’s () Google.

Dish is building a cloud-based 5G network as it works to expand its wireless business and diversify outside its legacy satellite pay-TV market. It has selected Oracle Cloud to provide the service-based architecture for the 5G network. 

“Oracle’s capabilities will essentially serve as the control tower of our network core, enabling our customers to consume software on demand,” said Marc Rouanne, chief network officer at Dish Wireless.

The financial terms of the deal were not revealed, but it gives Oracle an important role in Dish’s 5G network build-out project. 

In addition to the Dish Wireless contract, Oracle also announced teaming up with Oxford University in an arrangement that involves using its cloud resources to fight the COVID-19 pandemic. The goal is to speed up genetic analysis of the coronavirus to help identify variants quickly. The outbreak of new COVID-19 strains is frustrating the efforts to bring the pandemic to an end. ()

On April 23, Wolfe Research analyst initiated coverage on Oracle stock with a Hold rating and a $75 price target. Zukin’s price target points to 4.93% downside potential. The analyst observed that Oracle’s business has not been growing well lately and needs to improve for the stock to rise.

“We ultimately believe ORCL needs to show mid-single digit growth for shares to meaningfully re-rate and outperform other software stocks over a multi-year horizon,” noted Zukin.

Consensus among analysts on Wall Street is a Moderate Buy based on 8 Buy and 14 Hold ratings. The average analyst implies 5.67% downside potential to current levels.

ORCL scores an 8 out of 10 on TipRanks’ rating system, indicating the stock is likely to outperform the market.

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The post Oracle Wins Cloud Contract from Dish’s 5G Network Project appeared first on TipRanks Financial Blog.

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