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Analysts Are Bullish on Tyson Foods—Will Its Stock Mark Recovery?

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Sep. 21 2018, Updated 7:30 a.m. ET

Analysts’ recommendations and target price

Wall Street analysts maintain a bullish outlook on Tyson Foods (TSN) stock despite its near-term challenges. Among the 16 analysts providing recommendations on Tyson Foods, ten have given it “buys,” five have given it “holds,” and one has given it a “sell” rating. Analysts have a consensus target price of $70.87 per share on the stock, indicating a potential upside of 13.6% based on its closing price of $62.37 on September 18.

Besides Tyson Foods, analysts are also bullish on Conagra Brands (CAG) and Mondelēz (MDLZ) in the food industry.

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Demand for protein, portfolio rejig to boost financials

Shares of Tyson Foods are down 23.1% as retaliatory tariffs from China and Mexico affect exports. Meanwhile, the near-term supply glut in the domestic market is adversely affecting the prices of beef and pork, and the low prices of alternatives are affecting the volumes of chicken.

Despite its near-term challenges, Tyson Foods’ financials are likely to benefit from growing demand for protein-rich foods. Meanwhile, the company is optimizing its portfolio through acquisitions and the divestiture of its noncore brands. 

Tyson recently announced its acquisition of Keystone Foods, which is likely to strengthen its Prepared Foods segment. The segment is growing at a brisk pace, and its portfolio optimization strategy is likely to accelerate its sales and earnings growth.

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