Analysts maintain a favorable outlook
In the near term, Tyson Foods’ (TSN) earnings are likely to remain pressured, reflecting soft demand for chicken and lower pricing in the Beef segment due to oversupply.
Also, continued sluggishness in the Pork segment could further pressure the company’s sales and earnings growth. Citing tariff headwinds, the company’s management has lowered its full-year EPS outlook.
Tariffs are expected to impact the pricing and exports of Tyson Foods. Meanwhile, the demand-supply imbalance is likely to hurt its Beef, Pork, and Chicken segments. Following the downward revision in its EPS guidance, Jefferies, JPMorgan Chase, Credit Suisse, Mizuho, RBC, and BMO lowered their target prices on TSN stock.
However, most of the analysts providing recommendations on Tyson Foods stock maintain favorable outlooks. Higher demand for protein is likely to support the company’s top line in the coming quarters. Meanwhile, its portfolio restructuring initiatives and sustained growth in the Prepared Foods segment instill confidence.
Analysts see a 14% upside in TSN
On average, analysts maintain a target price of $71.13 per share on TSN stock, which indicates an upside of 14.0% based on its closing price of $62.40 on August 17.
Meanwhile, of the 17 analysts covering Tyson Foods stock, 65.0% have suggested “buys,” 29.0% have recommended “holds,” and 6.0% have recommended “sells.”