Strong earnings keep analysts positive
Tyson Foods (TSN) reported stronger-than-expected fiscal 4Q17 results on Monday, November 13, 2017. After the results, several analysts raised their target prices for the stock. JPMorgan Chase raised its target price to $81 from $77 per share, and BMO (Bank of Montreal) increased its target price to $89 from $85. Credit Suisse raised its target price for TSM stock to $76 from $75.
Tyson Foods is projected to report improved sales in the coming quarters, driven by favorable market conditions. Strong demand for protein-packed foods around the world could help drive the company’s top-line growth. Ample livestock supply, lower feed costs, and cost-saving initiatives are expected to drive the company’s profitability.
Tyson Foods’ Chicken segment is estimated grow at a healthy rate, driven by the AdvancePierre Foods acquisition and growth in its own products. Volumes for the Beef segment are anticipated to rise in the coming quarters. However, a softness in the foodservices division is expected to remain a drag.
About 63% of the analysts covering TSN stock have given it a “buy” recommendation, and 37% have maintained a “hold” rating. Analysts are suggesting a target price of $80.67 per share, which reflects an upside potential of 6% to its closing price of $76.07 on November 14, 2017.