000867 IBP Gets “Buy” Rating from Midwest Research

Chicago, IL - Midwest Research said it initiated coverage of beef and pork producer IBP Inc. with a buy rating and price target of $23 a share.

- Said a shift toward value-added meat and the introduction of case-ready meat, which has margins that are 60% above traditional processed meat, supported the recommendation.

- Said reduced cyclicality in earnings had not yet been priced into the stock.

- Said investors have already discounted an expected downturn in the cattle cycle.

- Forecast IBP to earn 71 cents a share in the third quarter, $2.51 a share in fiscal 2000 and $2.82 a share in 2001.

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