Tyson Foods (TSN – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Thomas Palmer from Citi maintained a Hold rating on the stock and has a $60.00 price target.
Thomas Palmer has given his Hold rating due to a combination of factors influencing Tyson Foods’ performance. The company is expected to report a slight earnings beat in the upcoming quarter, primarily driven by strong performance in the Chicken segment, which benefits from lower feed costs and higher industry prices. However, this positive outlook is tempered by challenges in the Beef segment and potential headwinds in Prepared Foods, which could limit overall company growth.
Despite the favorable conditions in the Chicken segment, Palmer expresses caution due to the potential peak in segment earnings, as corn prices rise and chicken slaughter rates increase. Additionally, Tyson Foods has consistently exceeded earnings expectations over the past six quarters, which may have already been factored into the stock price by investors. These considerations lead Palmer to maintain a Hold rating, reflecting a balanced view of the company’s prospects amid mixed signals across its business segments.