Tyson Foods: Analysts Maintain a ‘Buy’ Rating

Analysts maintain a “buy” rating

Most of the analysts maintain a “buy” rating on Tyson Foods (TSN) stock. The demand for protein is expected to remain high, which should drive the company’s sales and earnings. Continued strength in the company’s Prepared Foods segment and a favorable mix should support the growth. However, headwinds from tariffs, oversupply in the Pork segment, and weak demand for chicken will likely have a negative impact on the company’s financials in the near term.

Given the near-term challenges, RBC reduced its target price on Tyson Foods stock to $77 per share from $82.

Tyson Foods: Analysts Maintain a ‘Buy’ Rating

Previously, Tyson Foods lowered its earnings outlook for fiscal 2018 due to challenges in the Pork and Chicken segments. Several analysts lowered their target price on Tyson Foods stock following the lower guidance.

Jefferies lowered the target price to $75 from $85. Mizuho reduced its target price to $82 from $87. J.P. Morgan lowered its target price to $62 from $71, while Credit Suisse reduced its target price to $66 from $71.

Ratings and target price summary

Among the 17 analysts providing recommendations on Tyson Foods stock, 11 analysts recommend a “buy,” five recommend a “hold,” and one recommends a “sell.” Analysts maintain a target price of $71 per share on Tyson Foods stock, which implies an upside potential of 19.0% based on its closing price of $59.64 on August 6.

In comparison, analysts maintain a “hold” recommendation on Sanderson Farms (SAFM) and Pilgrim’s Pride (PPC).