Analyst Adam Samuelson of Goldman Sachs maintained a Hold rating on Tyson Foods (TSN – Research Report), with a price target of $49.00.
Adam Samuelson has given his Hold rating due to a combination of factors surrounding Tyson Foods’s current performance and future outlook. The recent fiscal quarter results exceeded Goldman Sachs and consensus expectations, primarily propelled by significant improvements in the Chicken segment’s margin, which saw an approximate 300 basis points increase quarter over quarter. This boost was attributed to lower feed costs and the benefits reaped from recent plant closures, which improved both live and plant operations. Despite these improvements, Samuelson remains cautious, acknowledging that while there is progress, Tyson Foods still has a considerable distance to go before reaching normalized earnings power.
Furthermore, while Tyson Foods’s management has reiterated its operating income guidance for the fiscal year 2024 and raised its profit outlook for the Chicken and Pork segments based on strong first-quarter performance, Samuelson believes that a more substantial increase in segment profitability is necessary for a more optimistic rating. The revision of EPS estimates upwards for the fiscal years 2024 to 2026 reflects the improved Chicken segment profitability; however, it is not sufficient to alter the Neutral stance. The report concludes with a slightly raised 12-month price target, yet maintains a Neutral rating, indicating that while there are positive aspects to Tyson Foods’s recent performance, there are still uncertainties and challenges that prevent a more favorable recommendation at this time.
In another report released on January 31, Citi also initiated coverage with a Hold rating on the stock with a $56.00 price target.
See the top stocks recommended by analysts >>
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TSN in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on TSN:
