Adam Samuelson, an analyst from Goldman Sachs, maintained the Hold rating on Tyson Foods (TSN – Research Report). The associated price target is $45.00.
Adam Samuelson’s Hold rating on Tyson Foods (TSN) is influenced by a variety of factors. TSN’s performance on Monday was subpar, underperforming the market with a 2.8% decrease compared to a 0.1% decrease in the S&P. Despite this, Tyson’s 4th quarter earnings per share for fiscal year 23 were better than expected. This was offset, however, by the initial outlook for FY24, which was lower than even the most conservative estimates. The quarter showed some positive signs, with a notable increase in chicken profitability, despite it still lagging behind its competitor, PPC.
Unfortunately, the prepared foods sector displayed weaker results due to increased advertising and lower startup costs that exerted pressure on a seasonally weak quarter. Looking forward, the management’s guidance for FY24’s operating income is significantly lower than the consensus from Refinitiv, with Samuelson’s estimate being at the high end of this lower range. The key aspects of this outlook are aligned with Samuelson’s previous expectations, showing an improvement in the chicken sector but increasing cyclical pressure in the beef sector. Consequently, Samuelson lowered his EPS estimates for FY24/25 and his 12-month price target, maintaining a Hold rating for TSN.
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Tyson Foods (TSN) Company Description:
Founded in 1935 and based in Arkansas, Tyson Foods, Inc. is a food company, which is engaged in the production of processed food. It operates through the following segments: Chicken, Beef, Pork, and Prepared Foods.
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